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Operations Management Book CH 11 & 12 Problems

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Question;Operations Management Book CH 11 & 12 Problems;S 11.4 Johnson Chemicals is considering two options for its supplier portfolio. Option 1 uses two local suppliers. Each has a ?unique- event? risk of 5%, and the probability of a ?super- event? that would disable both at the same time is estimated to be 1.5%. Option 2 uses two suppliers located in different countries. Each has a ?unique- event? risk of 13%, and the probability of a ?super- event? that would disable both at the same time is estimated to be 0.2%.;a) What is the probability that both suppliers will be disrupted using option 1?;b) What is the probability that both suppliers will be disrupted using option 2?;c) Which option would provide the lowest risk of a total shutdown?

 

Paper#53277 | Written in 18-Jul-2015

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