41. A manager is going to purchase new processing equipment and must decide on the number of spare parts to order with the new equipment. The spares cost $200 each, and any unused spares will have an expected salvage value of $50 each. The probability of usage can be described by this distribution: Number 0 1 2 3 Probability 10 .50 .25 15 If a part fails and a spare is not available, two days will be needed to obtain a replacement and install it. The cost for idle equipment is $500 per day. What quantity of spares should be ordered? a. Use the ratio method. b. Use the tabular method (see Table 12.3). Page 553

41. A manager is going to purchase new processing equipment and must decide on the number of spare parts to order with the new equipment. The spares cost $200 each, and any unused spares will have an expected salvage value of $50 each. The probability of usage can be described by this distribution: Number 0 1 2 3 Probability 10 .50 .25 15 If a part fails and a spare is not available, two days will be needed to obtain a replacement and install it. The cost for idle equipment is $500 per day. What quantity of spares should be ordered? a. Use the ratio method. b. Use the tabular method (see Table 12.3). Page 553

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

Please circle the most correct answer. It could be more than one.
I need the answer for this (a) A mobile repair shop had received a number of complaints on the length of time it took to make repairs. The manager responded by increasing the repair staff by 20 percent. Complaints on repair time quickly decreased, but then complaints on the cost of repairs suddenly increased. Oddly enough, when repair costs were analyzed, the manager found that the average cost of repair had actually decreased relative to what it was before the increase in staff. What are some possible explanations for the complaints, and what actions might the manager contemplate?
I need answer typing clear urjent no chatgpt i will give chatgpt
You are looking for your own first apartment. You go on StreetEasy to find one. Name two pieces of information you’d want to know about the apartment that isn’t explained on the web site. Please answer correct explain plz Don't answer by pen paper plz
need answer and 2 line explanation for each question..
completing an MBA could serve as a: screening device signaling device principle-agent model private information to be used only in specific situations
Which of the following is least likely to be considered a best practice by all employees.
What decision-making format would best be used when giving a straight final warning to an employee
Which of the following is false about virtual organisations?
What is the first step in developing a training program? Select a Choice Below OptionASetting the learning objectives for training OptionBDetermining what the organization needs in terms of training OptionCDetermining the delivery method depending on the type of training needed OptionDSetting the parameters for measuring the effectiveness of training
please answer all parts of the question within 30 minutes.
Answer all the parts otherwise don't solve it.