Question: Your firm sources Component A from two suppliers and Component B from three. You experience a business disruption if all sources for a component are

Your firm sources Component A from two suppliers and Component B from three. You experience a business disruption if all sources for a component are disrupted at the same time. Suppose any geographic region has an independent probability of a business disruption of 0.1 in any year. The suppliers for Component A are in two different geographic regions (Regions 1 and 2) while the suppliers for B are all clustered together in Region 3. Assuming any supplier can produce enough to fully satisfy your needs for their respective component, what is the overall likelihood that your business will be disrupted at all?

a.	0.01
	b.	0.1
	c.	0.109
	d.	0.2

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