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Johnson Chemicals is considering two options for its supplier portfolio. Option 1 uses two local suppliers. Each has a unique-event risk of4.5%,and the probability of
Johnson Chemicals is considering two options for its supplier portfolio. Option 1 uses two local suppliers. Each has a "unique-event" risk of4.5%,and the probability of a "super-event" that would disable both at the same time is estimated to be1.3%.Option 2 uses two suppliers located in different countries. Each has a "unique-event" risk of12%,and the probability of a "super-event" that would disable both at the same time is estimated to be0.27%
The probability that both suppliers will be disrupted using option 1 is and 2
WHich is the best
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