Business, 25.10.2019 01:43 banna01man

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 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 the suppliers to be 5%. assuming that the marginal cost of managing an additional supplier is \$15,0 per year how many suppliers should witt input devices use? assume that up to three nearly identical local suppliers are available .

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Phillip witt, president of witt input devices, wishes to create a portfolio of local suppliers for h...

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