please answer within 30 minutes. A public utility Intends to buy a turbine as part of an expansion plan and must now decide on the number of spare parts to order. Onepart, no. X135, can be purchased for $170 each. Carrying and disposal costs are estimated to be 190 percent of the purchase priceover the life of the turbine. A stockout would cost roughly $110,000 due to downtime, ordering, and "special purchase" factors.Historical records based on the performance of similar equipment operating under similar conditions suggest that demand for spareparts will tend to approximate a Poisson distribution with a mean of 4,4 parts for the useful life of the turbine.Use Table C.a. What is the optimal number of spares to order?Optimal number of sparesb. Carrying no spare parts would be the best strategy for what range of shortage cost? (Round your answer to 2 decimal places.)Shortage cost Cs

Given data: Average demand or mean (D) = 4.4 parts Purchased cost = $170 Holding & disposal…

Answered: A public utility intends to buy a…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section10.4: Simulation With Built-in Excel Tools

Problem 14P

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