Assuming marginal cost of managing an additional supplier

Assignment Help Operation Management

Reference no: EM1381113

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%.

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.

Reference no: EM1381113

Questions Cloud

In recognition of the post purchase role of promotion : In recognition of the post purchase role of promotion, what strategies would you suggest for: (a) a busy hospital emergency room, (b) an executive fitness program taht provides health screening

Replacing elements through style attribute : The style attribute is replacing some elements in always evolving HTML world. Many features that were implemented using elements in older versions of HTML are implemented using the style attribute.

Sunny park tailors has been asked to make three different : Sunny Park Tailors has been asked to make three different types of wedding suits for separate customers. The table below highlights the time taken in hours for (1) cutting and sewing and (2) delivery of each of the suits

Elucidate how it would be conducted : Should the US government policy favour certain kinds of immigrants also should preference be given to the neediest applicants.

Assuming marginal cost of managing an additional supplier : 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.

Marketing planning must be aligned with the organizational : Marketing planning must be aligned with the organizational strategic plan and is based on a situational analysis. The marketing planning must also be implemented and controlled

Create an html form and a corresponding java servlet : Construct an HTML form and a corresponding Java servlet that receives one or many parameters from the form and displays the result in a servlet generated dynamic page.

What is bakers inventory turnover : what is bakers inventory turnover? what is the percent of bakers assets committed to inventory? how does bakers performance compare to Arrow distrubuting?

Illustrate what are the implications for when jacob : According to your model, when will top slice need to have the expanded work cell up also running. Illustrate what are the implications for when Jacob should start the expansion effort.

User Account

All Pages