Question: John Deere is deciding whether to implement a single or dual-sourcing strategy for one of the critical components used in production of its excavators at

John Deere is deciding whether to implement a single or dual-sourcing

John Deere is deciding whether to implement a single or dual-sourcing strategy for one of the critical components used in production of its excavators at its facility in Kernesville, NC. John Deere provides you with the following estimates: - The probability that any given supplier fails independently of the others is 4% (e.g. a quality failure) - The probability of a "super-event" which would knock out all of the potential suppliers is 1.3% (e.g. a natural disaster) - If all suppliers are down, John Deere will not be able to meet its orders and this creates an annualized loss of $1700000 per year. - The cost to manage a supplier is $23000 per year. Draw a decision tree to determine the best sourcing strategy for John Deere. Calculate the total annual expected cost if using a dual-sourcing (two supplier) strategy. a. 70785 b. 114276 c. 91276 d. 2685 e. 68100 f. 48685 g. 22100 h. 47820

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Q:

John Deere is deciding whether to implement a single or dual-sourcing strategy for one of the critical components used in production of its excavators at its facility in Kernesville, NC. John Deere...

Q:

John Deere is deciding whether to implement a single or dual-sourcing strategy for one of the critical components used in production of its excavators at its facility in Kernesville, NC. John Deere...

Q:

John Deere is deciding whether to implement a single or dual-sourcing strategy for one of the critical components used in production of its excavators at its facility in Kernesville, NC. John Deere...

Q:

John Deere is deciding whether to implement a single or dual-sourcing strategy for one of the critical components used in production of its excavators at its facility in Kernesville, NC. John Deere...

Q:

John Deere is deciding whether to implement a single or dual-sourcing strategy for one of the critical components used in production of its excavators at its facility in Kernesville, NC. John Deere...

Q:

John Deere is deciding whether to implement a single or dual-sourcing strategy for one of the critical components used in production of its excavators at its facility in Kernesville, NC. John Deere...

Q:

John Deere is deciding whether to implement a single or dual-sourcing strategy for one of the critical components used in production of its excavators at its facility in Kernesville, NC. John Deere...

Q:

John Deere is deciding whether to implement a single or dual-sourcing strategy for one of the critical components used in production of its excavators at its facility in Kernesville, NC. John Deere...

Q:

John Deere is deciding whether to implement a single or dual-sourcing strategy for one of the critical components used in production of its excavators at its facility in Kernesville, NC. John Deere...

Q:

John Deere is deciding whether to implement a single or dual-sourcing strategy for one of the critical components used in production of its excavators at its facility in Kernesville, NC. John Deere...

Q:

Figure shows a printout from a linear programming package. Explain what these results show. How could the format of the results beimproved? -=*=- INFORMATION ENTERED -=*= PROBLEM NAME Manheim Service...

Q:

As a firm takes on more debt, its probability of bankruptcy faces a Other factors held constant, a firm whose earnings are relatively volatile chance of bankruptcy. Therefore, when other factors are...

Q:

If leverage is high, both positive and negative changes in asset values get amplified into larger changes in net worth. Group of answer choices True False

Q:

please answer only if you know programming language is c++ For this lab, your objective is to define the functions below. Define the void function SwapNodes () that takes three generic type Node...