Suppose that the manager of a company has estimated the probability of a super-event sometime during the next five years that will disrupt all suppliers as 5%, and the probability of a unique-event that would disrupt one of them sometime during the next five years to be 10%. Supplier management costs during this period are $30,000 per supplier. The financial cost incurred if all suppliers are disrupted at the same time is estimated to be $2,000,000. Assume that up to five nearly identical suppliers are available. How many suppliers should the manager use?

Question

06-06-2022
Business

Answered

Find the best answers to your questions at Westonci.ca, where experts and enthusiasts provide accurate, reliable information. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

Suppose that the manager of a company has estimated the probability of a super-event sometime during the next five years that will disrupt all suppliers as 5%, and the probability of a unique-event that would disrupt one of them sometime during the next five years to be 10%. Supplier management costs during this period are $30,000 per supplier. The financial cost incurred if all suppliers are disrupted at the same time is estimated to be $2,000,000. Assume that up to five nearly identical suppliers are available. How many suppliers should the manager use?

Sagot :

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.

The Ambulance Fee Schedule requires that a service meet which of the following criteria?A. It must be medically necessary.B. The patient must have no other form

Select the statement below that best describes the key structure/function relationship of the ATP synthase complex. a. Proton flow through the F. subunit causes

You want to securely share the file safe. Txt with a colleague as the file safe. Enc. They’ve given you their RSA public key in the file colleague_key. Pem. Whi

Question 5: Find the sum of [tex]$8 \frac{5}{6} + 2 \frac{4}{9}$[/tex].A. [tex]$10 \frac{23}{18}$[/tex]B. [tex]$11 \frac{3}{5}$[/tex]C. [tex]\(11 \frac{5}

(–5, 0.5) into x – 4y = –7 to get

In the chemical equation for photosynthesis, carbon dioxide and water are converted to glucose and oxygen.[tex]$ 6 CO_2 + 6 H_2O \rightarrow C_6H_{12}O_6 + 6 O

The New York Yankees are leading the Toronto Blue Jays one game to none in the best-of-five playoff series. After a playoff win, the probability of the Yankees

Find the unknown quantity in the following percent problem using the formula [tex]R \cdot B = A[/tex]. Round your answer to two decimal places, if necessary.142

In writing goals, it is helpful to write goals as a positive action rather than as an action to eliminate a negative.a. Trueb. False

Would you consider investing in a company that announced a stock split? Explain why.

Parrain Parrain · Answer 1 · 2022-06-08T06:53:54-04:00

Based on the financial cost incurred if supply is disrupted and the probability that this happens, the number of suppliers the manager should use is Two (2) suppliers.

How many suppliers should be used?

If 3 suppliers are used, the probability of disruption would be:

= Probability of super event + (1 - Probability of super event) x Probability of unique event^ number of suppliers

= 5% + (1 - 5%) x 10%³

= 0.145

The payoff would be:

= 2 million x 0.145 + 30,000

= $191,900

With two suppliers:
= 2 million x (5% + (1 - 5%) x 10%²) + 30,000

= $169,000

With one supplier :

= 2 million x (5% + (1 - 5%) x 10%) + 30,000

= $320,000

The lowest cost is with 2 suppliers so this should be chosen.

Find out more on probability of disruption at https://brainly.com/question/16625463.

#SPJ1

Sagot :

How many suppliers should be used?

Other Questions