A Machine Is Expected to Use Approximately Three Spare Parts

question 27

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?
Ce = $200
Mean = 3 (Poisson)
Cs = ?
Assuming a Poisson-distributed variable with a mean of 3, if stocking 5 units is optimal, this implies that the optimal service level must be between .815 and .916
Thus,

---

Definitions:

Blood-Typing Chart

A blood-typing chart is a tool used to identify an individual's blood type based on the presence or absence of certain antigens on the surface of red blood cells.

Anti-Rh Sera

Antibodies used to prevent Rh sensitization in individuals who are Rh-negative, often given to Rh-negative mothers who may carry Rh-positive children.

Blood-Typing Chart

A reference that shows the compatibility between different blood types, used in transfusions to prevent adverse reactions.

Agglutination

The clumping together of particles, typically referring to the clumping of blood cells in response to an antibody, used in blood typing and in diagnosing infections.