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Home Q & A Board Other Fields Homework Help Business Management
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sinnefoula sinnefoula
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7 years ago
Suppose that the manager of a company has estimated the probability of a super-event sometime during the next three years that will disrupt all suppliers as 2%. In addition, the firm currently uses four suppliers for its main component, and the manager estimates the probability of a unique-event that would disrupt one of them sometime during the next three years to be 20%. Supplier management costs during this period are $50,000 per supplier. The financial cost incurred if all four suppliers are disrupted at the same time is estimated to be $10,000,000. What is the expected monetary value (cost) of the current supplier diversification arrangement?
A) $215,680
B) $412,800
C) $8,240,000
D) $10,200,000
E) $415,680
Textbook 
Operations Management

Operations Management


Edition: 10th
Authors:
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HplyEvrAftrHplyEvrAftr
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7 years ago
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#2
3 years ago
thank you
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#3
3 years ago
thanx
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