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Bloom's Jeans is searching for new suppliers, and Debbie Bloom, the owner, has narrowed her choices to two sets. Debbie is very concerned about supply

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Bloom's Jeans is searching for new suppliers, and Debbie Bloom, the owner, has narrowed her choices to two sets. Debbie is very concerned about supply disruptions, so she has chosen to use three suppliers no matter what. For option 1, the suppliers are well-established and located in the same country. Debbie calculates the "unique-event" risk for each of them to be 5%. She estimates the probability of a nationwide event that would knock out all three suppliers to be 2.7\%. For option 2, the suppliers are newer but located in three different countries. Debbie calculates the "unique-event" risk for each of them to be 22%. She estimates the "super-event" probability that would knock out all three of these suppliers to be 0.5%. Purchasing and transportation costs would be \$1, 200,000 per year using option 1 and $1,210,000 per year using option 2. A total disruption would ereate an annualized loss of $520,000. a) The prutabilty that al itree supplen =b te dsspled using optien 1 is froun your abgonse to fire decima places) E) The probability that at itwee supplien mill be dispted uning opbicn 2 is pound your mosponse se fore doomal places). 4) Based on the butal anual purthandeg and transpertation cobt plut expected arruatest dsnectian coak otemi bet

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