The probability that all three suppliers are disrupted using option 1. Introduction: Supply chain management is one of the important elements of a business which impacts business product development. With expanding businesses in global conditions, supply chain activities can impact the cost effectiveness of these businesses.

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Answer 1

Question

Chapter 11.S, Problem 5P

a)

Summary Introduction

To determine: The probability that all three suppliers are disrupted using option 1.

Introduction: Supply chain management is one of the important elements of a business which impacts business product development. With expanding businesses in global conditions, supply chain activities can impact the cost effectiveness of these businesses.

b)

Summary Introduction

To determine: The probability that all three suppliers are disrupted using option 2.

c)

Summary Introduction

To determine: The total annual expected cost for option 1.

d)

Summary Introduction

To determine: The total annual expected cost for option 2.

e)

Summary Introduction

To determine: The best options.

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Phillip Witt, president of Witt Input Devices, wishesto 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 thatthe probability in any year of a " super-event" that might shutdown 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 thesuppliers to be 5%. Assuming that the marginal cost of managingan additional supplier is $15,000 per year, how many suppliersshould Witt Input Devices use? Assume that up to three nearlyidentical local suppliers are available.

Phillip Witt, president of Witt Input Devices, wishes to create a portfolio of local suppliers for his new line of keyboards. He has a total of 3 suppliers available. Philip believes that the probability of a super-event that might shut down all suppliers at the same time to be 3.0%. Such a shutdown would cost company 5 million dollars. He estimates the unique event risk for any supplier to be 5.0 %. Assuming that managing an additional supplier is 1 thousand dollars, how many suppliers should Philip use? Assume that suppliers are identical. (Only enter a number without any units.

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 at least 2 weeks is 3%. Such a total shutdown would cost the company approximately $480,000. 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 $16,000 per year, how many suppliers should Witt Input Devices use? Assume that up to three nearly identical local suppliers are available. Find the EMV for alternatives using 1, 2, or 3 suppliers. EMV(1)=$54,40054,400 (Enter your response rounded to the nearest whole number.) EMV(2)= ? $ (Enter your response rounded to the nearest whole number.) EMV(3)= ? $ (Enter your response…

Answer 2

Question

Chapter 11.S, Problem 5P

a)

Summary Introduction

To determine: The probability that all three suppliers are disrupted using option 1.

Introduction: Supply chain management is one of the important elements of a business which impacts business product development. With expanding businesses in global conditions, supply chain activities can impact the cost effectiveness of these businesses.

b)

Summary Introduction

To determine: The probability that all three suppliers are disrupted using option 2.

c)

Summary Introduction

To determine: The total annual expected cost for option 1.

d)

Summary Introduction

To determine: The total annual expected cost for option 2.

e)

Summary Introduction

To determine: The best options.

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Answer 3

Question

Chapter 11.S, Problem 5P

a)

Summary Introduction

To determine: The probability that all three suppliers are disrupted using option 1.

Introduction: Supply chain management is one of the important elements of a business which impacts business product development. With expanding businesses in global conditions, supply chain activities can impact the cost effectiveness of these businesses.

b)

Summary Introduction

To determine: The probability that all three suppliers are disrupted using option 2.

c)

Summary Introduction

To determine: The total annual expected cost for option 1.

d)

Summary Introduction

To determine: The total annual expected cost for option 2.

e)

Summary Introduction

To determine: The best options.

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Answer 4

Question

Chapter 11.S, Problem 5P

a)

Summary Introduction

To determine: The probability that all three suppliers are disrupted using option 1.

Introduction: Supply chain management is one of the important elements of a business which impacts business product development. With expanding businesses in global conditions, supply chain activities can impact the cost effectiveness of these businesses.

b)

Summary Introduction

To determine: The probability that all three suppliers are disrupted using option 2.

c)

Summary Introduction

To determine: The total annual expected cost for option 1.

d)

Summary Introduction

To determine: The total annual expected cost for option 2.

e)

Summary Introduction

To determine: The best options.

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Answer 5

Chapter 11.S, Problem 5P

a)

Summary Introduction

To determine: The probability that all three suppliers are disrupted using option 1.

Introduction: Supply chain management is one of the important elements of a business which impacts business product development. With expanding businesses in global conditions, supply chain activities can impact the cost effectiveness of these businesses.

b)

Summary Introduction

To determine: The probability that all three suppliers are disrupted using option 2.

c)

Summary Introduction

To determine: The total annual expected cost for option 1.

d)

Summary Introduction

To determine: The total annual expected cost for option 2.

e)

Summary Introduction

To determine: The best options.

Answer 6

Chapter 11.S, Problem 5P

a)

Summary Introduction

To determine: The probability that all three suppliers are disrupted using option 1.

Introduction: Supply chain management is one of the important elements of a business which impacts business product development. With expanding businesses in global conditions, supply chain activities can impact the cost effectiveness of these businesses.

Answer 7

Chapter 11.S, Problem 5P

a)

Summary Introduction

To determine: The probability that all three suppliers are disrupted using option 1.

Introduction: Supply chain management is one of the important elements of a business which impacts business product development. With expanding businesses in global conditions, supply chain activities can impact the cost effectiveness of these businesses.

Answer 8

b)

Summary Introduction

To determine: The probability that all three suppliers are disrupted using option 2.

Answer 9

b)

Summary Introduction

To determine: The probability that all three suppliers are disrupted using option 2.

Answer 10

c)

Summary Introduction

To determine: The total annual expected cost for option 1.

Answer 11

c)

Summary Introduction

To determine: The total annual expected cost for option 1.

Answer 12

d)

Summary Introduction

To determine: The total annual expected cost for option 2.

Answer 13

d)

Summary Introduction

To determine: The total annual expected cost for option 2.

Answer 14

e)

Summary Introduction

To determine: The best options.

Answer 15

e)

Summary Introduction

To determine: The best options.

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 11.S - Prob. 1DQ Ch. 11.S - Prob. 2DQ Ch. 11.S - Prob. 3DQ Ch. 11.S - Prob. 4DQ Ch. 11.S - Prob. 5DQ Ch. 11.S - Prob. 6DQ Ch. 11.S - Prob. 7DQ Ch. 11.S - Prob. 8DQ Ch. 11.S - Prob. 9DQ Ch. 11.S - Prob. 10DQ

Solution Summary: The author explains the probability that all three suppliers are disrupted using option 1.

To determine: The probability that all three suppliers are disrupted using option 2.

To determine: The total annual expected cost for option 1.

To determine: The total annual expected cost for option 2.

To determine: The best options.

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Chapter 11 Solutions