Question: please find EMV(1) = EMV(2)= EMV(3)= Based on the EMV value, the best choice to use is? one supplier two suppliers three supplers?? Phillip Witt,

please find

EMV(1) =

EMV(2)=

EMV(3)=

Based on the EMV value, the best choice to use is?

one supplier

two suppliers

three supplers?? please find EMV(1) = EMV(2)= EMV(3)= Based on the

Phillip Witt, president of Witt Input Devices, wishes to create a portfolio of local suppliers for his new line of keyboards. As the suppliers all reside in a location prone to hurricanes, tornadoes, flooding, and earthquakes, Phillip believes that the probability in any year of a "super-event that might shut down all suppliers at the same time at least 2 weeks is 3%. Such a total shutdown would cost the company approximately $450,000. He estimates the "unique-event" risk for any of the suppliers to be 5%. Assuming that the marginal cost of managing an additional supplier is $14,800 per year, how many suppliers should Witt Input Devices use? Assume that up to three nearly identical local suppliers are available. Find the EMV for alternatives using 1, 2 or 3 suppliers. EMV(1) = $(Enter your response rounded to the nearest whole number.)

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