question archive One of the most important concerns of the manufacturer is to determine the appropriate number of suppliers
One of the most important concerns of the manufacturer is to determine the appropriate number of suppliers
Subject:BusinessPrice: Bought3
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
