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Reelrad Co. manufacturer of satellite radios purchases electronic components as modules. The reliabilities of components differ by supplier (see diagram, below). Suppose that the configuration of the components is given by:

Series-Parallel System

One very critical component has two modules as "backup" in parallel with the main unit. The components can be purchased from three different suppliers. The reliabilities of the components are as follows:

Component        Supplier 1         Supplier 2         Supplier 3

    A                       0.95                    0.96                    0.98

    B                       0.97                    0.95                    0.98

    C                       0.93                    0.96                    0.94

    D                       0.99                    0.93                    0.92

    E                       0.99                    0.98                    0.96

Transportation and purchasing considerations require that only one supplier be chosen. Which one should be selected if the radio is to have the highest possible reliability?

Business Management, Management Studies

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