Problemphiliip witt believes that the probability in any, Ask an Expert

Management Studies

Problem:

Philiip Witt believes that the probability in any year of a 'super event' like tornado or earthquake that all suppliers may shut down at the same time for at least 2 weeks at 3%. Total shutdown would cost company apprx $400,000.

He estimates the 'unique event' risk for any of the suppliers to be 5%.

Required:

Question 1) Assuming marginal cost of managing an additional supplier is $15,000 per year how many suppliers should Witt use?

Assume there are up to (3) nearly identical suppliers nearby. Solve the problem and show all work.

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91162298

Have any Question?Write your Review or question?

Related Questions in Operation Management

You open a new clothing store in beautiful southern

You open a new clothing store in beautiful Southern California, near the beach. The clothing is designed and marketed to young, athletic, attractive people (or at least people who aspire to be young, athletic, and attrac ...

1 when thinking about the organization where you work or

1. When thinking about the organization where you work (or previously worked), what would you say is the level of participatory management typically used? Discuss specific examples for which this style of management prov ...

1 discuss the three methods for choosing an arbitrator2

1. Discuss the three methods for choosing an arbitrator. 2. What are the possible positions concerning individual rights under collective bargaining agreements. (Please list all of them in your answer.) 3. Describe how D ...

As we discussed seniority is an important provision for

As we discussed, seniority is an important provision for many union negotiators. Presently, the last-hired-first-fired school of thought is being hotly debated in public education. Unions consistently take the stance tha ...

1 tell us about your favorite study environment why does

1. Tell us about your favorite study environment. Why does this environment help you focus and study effectively? 150 words minimum 2. Based on your experience or what you have learned in class (or in different classes), ...

1 explain cinemark internal analysis and provide sources2

1. Explain cinemark internal analysis and provide sources? 2. How might the way an individual view themself in the context of organizational leadership or as a leader of others influence their dissertation research topic ...

1 because the functional structure groups specialists and

1. Because the functional structure groups specialists and fosters economies of scale, it tends to address cost and quality concerns well. A. True B. False 2. Consistency and coordination tend to be problems in which org ...

What is the role of leadership with respect to

What is the role of leadership with respect to globalization? Discuss the types of knowledge and behaviors that an organization would need to be a successful leader in the global arena. Remember that you must use citatio ...

1 what are the key functions of the agency for healthcare

1. What are the key functions of the Agency for Healthcare Research and Quality and how can its nationwide and worldwide mission mandates influence health care reform? 2. As the chief executive officer of a healthcenter ...

1 all else being equal if a nation decided to intervene in

1. All else being equal, if a nation decided to intervene in free trade anyways, which of the following policy options would be most beneficial to the country and which would be the least beneficial? Please explain your ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert