Question: Problem S11.4 Question Help Johnson Chemicals is considering two options for its supplier portfolio. Option 1 uses two local suppliers. Each has a unique-event risk

Problem S11.4 Question Help Johnson Chemicals is

Problem S11.4 Question Help Johnson Chemicals is considering two options for its supplier portfolio. Option 1 uses two local suppliers. Each has a "unique-event" risk of 4.5%, and the probability of a "super-event" that would disable both at the same time is estimated to be 1.6%. Option 2 uses two suppliers located in different countries. Each has a "unique-event" risk of 14%, and the probability of a "super-event" that would disable both at the same time is estimated to be 0.24% (round your a) The probability that both suppliers will be disrupted using option 1 is response to five decimal places). (round your b) The probability that both suppliers will be disrupted using option 2 is response to five decimal places). c) (1) provides the lowest risk of a total shutdown. (1) O Option 1 Option 2

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