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2. Johnson Chemicals is considering two options for its supplier portfolio. Option 1 uses two local suppliers. Each has a unique-event risk of 4.5%,
2. Johnson Chemicals is considering two options for its supplier portfolio. Option 1 uses two local suppliers. Each has a "unique-event" risk of 4.5%, and the probability of a "super-event" that would disable both at the same time is estimated to be 1.3%. Option 2 uses two suppliers located in different countries. Each has a "unique-event" risk of 14%, and the probability of a "super-event" that would disable both at the same time is estimated to be 0.27%. a) The probability that both suppliers will be disrupted using option 1 is decimal places). (round your response to five b) The probability that both suppliers will be disrupted using option 2 is decimal places). (round your response to five c) (1) (1) O Option 1 O Option 2 provides the lowest risk of a total shutdown.
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