• S11.3 Referring to Problem S11.2, Wellington Company re-estimated the probability of a “super-event” to 0.2% due to some heavy safety investment carried out in the Albuquerque plant. In addition, they replaced their second and third suppliers, for quality reasons, with two others, whose annual management cost would be €20,000 each (compared to €10,000 previously).

Assuming that the first supplier would be the first choice, how many suppliers should Wellington Company use?