Question
Phillip witt president of witt input devices wishes to create a portfolio of local suppliers for his new line of keyboards. as the supplier all
Phillip witt president of witt input devices wishes to create a portfolio of local suppliers for his new line of keyboards. as the supplier all reside in a location phone to hurricanes , tornadoes, flooding and earthquakes. Phillip believe that the probability in one year of super event that might shut down all suppliers at the same time for at least two weeks is 3%. such a total total shutdown would cost the company $4000 000. he estimates the unique event risk for any of suppliers to be 5%. assuming that the marginal cost of managing an additional supplier is $15 000 per year, how many suppliers would Witt input device use? Assume that up to three nearly identical local suppliers are available.
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