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A Machine Is Expected to Use Approximately Three Spare Parts

Question 168

Essay

A machine is expected to use approximately three spare parts during its useful life.The spares cost $200 each and have no salvage value or other use.The manager has ordered five spares.Assuming a Poisson usage rate,what range of shortage cost is implied?

Correct Answer:

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Ce = $200
Mean = 3 (Poisson)
C...

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