Question: Please answer 11.2 question from below. Problems Problems S11.1-S11.5 relate to Evaluating Disaster Risk in the Supply Chain $11.1 How would you go about attempting

Please answer 11.2 question from below.

Please answer 11.2 question from below. Problems

Problems Problems S11.1-S11.5 relate to Evaluating Disaster Risk in the Supply Chain $11.1 How would you go about attempting to come up with the probability of a "super-event" or the probability of a "unique- event?" What factors would you consider? $11.2 Following the incident of a furnace fire in the semicon- ductor plant in Albuquerque, New Mexico, Wellington Company decided to change its single-sourcing strategy of major compo- nents to multi-sourcing. The top management of Wellington Company believes that the probability in any year of a "super- event" that might shut down Albuquerque plant again for at least 2 weeks is 0.3%, causing financial strains of 600,000. However, the probability of a "unique event" risk for any of the suppliers is estimated to be 2%. Evaluate the number of suppliers Wellington Company should select, assuming that the marginal cost of man- aging each supplier will not exceed 10,000 per year and that up to three nearly identical suppliers are available. $11.3 Referring to Problem S11.2, Wellington Company some heavy safety investment carried out in the Albuquerque re-estimated the probability of a "super-event" to 0.2% due to plant. In addition, they replaced their second and third suppliers, for quality reasons, cost would be 20,000 each (compared to 10,000 previously). Assuming that the first supplier would be the first choice, how with two others, whose annual management many sur use

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