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John Deere is deciding whether to implement a single or dual-sourcing strategy for one of the critical components used in production of its excavators at

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John Deere is deciding whether to implement a single or dual-sourcing strategy for one of the critical components used in production of its excavators at its facility in Kernesville, NC. John Deere provides you with the following estimates: - The probability that any given supplier fails independently of the others is 9% (e.g. a quality failure) - The probability of a "super-event" which would knock out all of the potential suppliers is 0.9% (e.g. a natural disaster) - If all suppliers are down, John Deere will not be able to meet its orders and this creates an annualized loss of $1300000 per year. - The cost to manage a supplier is $9000 per year. Draw a decision tree to determine the best sourcing strategy for John Deere. Which strategy does John Deere prefer, single sourcing or dual sourcing? Enter the total expected cost associated with the better of the two strategies. Rounding instructions: - Carry the calculation for the probability that all suppliers fail to the nearest thousandth of a percent, e.g. 0.03418 or 3.418%. - Carry all other calculations to at least 3 decimal places. - Enter your final answer in dollars rounded to the nearest dollar. John Deere is deciding whether to implement a single or dual-sourcing strategy for one of the critical components used in production of its excavators at its facility in Kernesville, NC. John Deere provides you with the following estimates: - The probability that any given supplier fails independently of the others is 9% (e.g. a quality failure) - The probability of a "super-event" which would knock out all of the potential suppliers is 0.9% (e.g. a natural disaster) - If all suppliers are down, John Deere will not be able to meet its orders and this creates an annualized loss of $1300000 per year. - The cost to manage a supplier is $9000 per year. Draw a decision tree to determine the best sourcing strategy for John Deere. Which strategy does John Deere prefer, single sourcing or dual sourcing? Enter the total expected cost associated with the better of the two strategies. Rounding instructions: - Carry the calculation for the probability that all suppliers fail to the nearest thousandth of a percent, e.g. 0.03418 or 3.418%. - Carry all other calculations to at least 3 decimal places. - Enter your final answer in dollars rounded to the nearest dollar

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