Question: Please show work either in Excel with formulas or handwritten so I can understand what's going on! I promise to upvote if correct!! Samsung needs
Please show work either in Excel with formulas or handwritten so I can understand what's going on! I promise to upvote if correct!!

Samsung needs your assistance determining whether to source a critical component from outside Korea using either single or dual sourcing. - Samsung estimates the probability of a "super-event" which would knock out all of the potential suppliers (e.g. a natural disaster or global pandemic) to be 1.9% - Samsung estimates the probability that any given supplier fails independently of the others (e.g. due to a quality or yield failure) to be 9.7% - The cost to manage a supplier is $208,000 per year. - A total disruption of the order would create an annualized loss of $2.5 million per year. Draw a decision tree to determine the best sourcing strategy for Samsung. - Calculate the expected cost for the single-sourcing (one supplier) strategy. - Calculate the expected cost for the dual-sourcing (two suppliers) strategy - Which strategy is preferred? Enter the absolute difference in the expected costs of the two strategies. Rounding instructions: - Enter your final answer rounded to the nearest dollar. - It is important on this problem to carry the probability calculations to 5 decimal places because they are multiplied by large numbers in the millions that will compound rounding differences. - E.g. The calculation =5/7=0.714286 should be carried to at least 0.71429 not 0.71 nor 0.714
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
