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. 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.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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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.
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