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One of the most important concerns of the manufacturer is to determine the appropriate number of suppliers. Suppose, a factory manager wants to know to
One of the most important concerns of the manufacturer is to determine the appropriate number of suppliers. Suppose, a factory manager wants to know to work with one or two or three suppliers? Hence, based on hypothesized following information, help factory manager to receive his response. (Draw decision tree)
- Super-event probability is 0.6%
- Unique-event probability is 5%
- Marginal cost of managing an additional supplier is $5,000
- financial loss incurred if a disaster caused all suppliers to be down simultaneously is $20,000,000
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