Question: *Use S11.2 for reference. Answer S11.7 only. Thank you* ..S11.2 Phillip Witt, president of Witt Input Devices, wishes to create a portfolio of local suppliers

*Use S11.2 for reference. Answer S11.7 only.*Use S11.2 for reference. Answer S11.7 only. Thank you*

..S11.2 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 for at least 2 weeks is 3%. Such a total shutdown would cost the company approximately $400,000. 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 $15,000 per year, how many suppliers should Witt Input Devices use? Assume that up to three nearly identical local suppliers are available. ..S11.7 Over the past 5 weeks, demand for wine at Winston's Winery has been 1,000, 2,300, 3,200, 1,750, and 1,200 bottles. Winston has placed weekly orders for glass bottles of 1,100, 2,500, 4,000, 1,000, and 900 units. (Recall that the sample variance of a data set can be found by using the VAR.S function in Excel or by plugging each x value of the 2 (n-1) data set into the formula: Variance = 2**, where x is the mean of the data set and n is the number of values in the set.) a. What is the variance of demand for Winston's Winery? b. What is the variance of orders from Winston's Winery for glass bottles? c. What is the bullwhip measure for glass bottles for Winston's Winery? d. Is Winston's Winery providing an amplifying or smoothing effect

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