Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Flextronics wishes to create a portfolio of suppliers for its manufacturing facility. The estimate the probability of a super - event that would shut down

Flextronics wishes to create a portfolio of suppliers for its manufacturing facility. The estimate the probability of a super-event that would shut down all suppliers during a 2 week production cycle as0.18%(0.0018) and the probability of a unique event that would shut down any single supplier for 2 weeks as12%(0.12). The cost of shutting down Flextronics production due to loss of supply is estimated to be $1,000,000 and the marginal cost of maintaining one supplier is $20,000. The expected cost of mantaining 3 suppliers[EMV(3)] is
A.
$141,584.00
B.
$1,030,0000
C.
0.003525
D.
$63,524.89
E.
$56,174.08

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Health Care Management

Authors: Sharon B. Buchbinder, Nancy H. Shanks

3rd Edition

9781284081015

Students also viewed these General Management questions