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Use the following narrative for questions 10-12. Suppose that underage costs are $7 per unit and overage costs are $2 per unit. Further suppose that

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Use the following narrative for questions 10-12. Suppose that underage costs are $7 per unit and overage costs are $2 per unit. Further suppose that you have paid a perfectly reliable supplier $4.5 (\$0.1 per unit) to provide you with up to 45 units in the case of underage at the additional cost of $1 per unit. Assuming that 60 units will be needed to satisfy the demand, the following supplier strategies are considered: - Cost-effective supplier strategy (working with Supplier 1 only), or - Dual supplier strategy (working with both Supplier 1 and Supplier 2). 10. Which supplier strategy is better? A. Cost-effective supplier strategy B. Dual supplier strategy C. There is no difference between them 11. The expected cost of "Cost-effective supplier strategy" is $ A. 0 B. 4.5 C. 10 D. 13.5 E. 14.5 F. 24.5 G. 28.5 H. 140 l. 154.5 J. 198 K. 420 L. 570 12. The expected cost of "Dual supplier strategy" is \$ A. 0 B. 4.5 C. 10 D. 13.5 E. 14.5 F. 24.5 G. 28.5 H. 140 I. 154.5 J. 198 K. 420 L. 570 Use the following narrative for questions 10-12. Suppose that underage costs are $7 per unit and overage costs are $2 per unit. Further suppose that you have paid a perfectly reliable supplier $4.5 (\$0.1 per unit) to provide you with up to 45 units in the case of underage at the additional cost of $1 per unit. Assuming that 60 units will be needed to satisfy the demand, the following supplier strategies are considered: - Cost-effective supplier strategy (working with Supplier 1 only), or - Dual supplier strategy (working with both Supplier 1 and Supplier 2). 10. Which supplier strategy is better? A. Cost-effective supplier strategy B. Dual supplier strategy C. There is no difference between them 11. The expected cost of "Cost-effective supplier strategy" is $ A. 0 B. 4.5 C. 10 D. 13.5 E. 14.5 F. 24.5 G. 28.5 H. 140 l. 154.5 J. 198 K. 420 L. 570 12. The expected cost of "Dual supplier strategy" is \$ A. 0 B. 4.5 C. 10 D. 13.5 E. 14.5 F. 24.5 G. 28.5 H. 140 I. 154.5 J. 198 K. 420 L. 570

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