Telecomp, a computer manufacturer with a global supply chain, is adding a new supplier for some of

Question:

Telecomp, a computer manufacturer with a global supply chain, is adding a new supplier for some of its component parts, and the suppliers it€™s considering are in China, India, Thailand and the Philippines. As part of its risk management program Telecomp wants to assess the possible impact of a supplier shutdown in the event of a natural disaster, such as a flood, tire, or an earthquake. The following payoff table summarizes Telecomp€™s losses (in millions of dollars) for supplier shutdowns given different levels of event severity.