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Johnson Chemicals is considering two options for its supplier portfolio. Option 1 uses two local suppliers. Each has a "unique- event" risk of 5%, and the probability of a "super- event" that would disable both at the same time is estimated to be 1.5%. Option 2 uses two suppliers located in different countries. Each has a "unique- event" risk of 13%, and the probability of a "super- event" that would disable both at the same time is estimated to be 0.2%.
a) What is the probability that both suppliers will be disrupted using option 1?
b) What is the probability that both suppliers will be disrupted using option 2?
c) Which option would provide the lowest risk of a total shutdown?
A machine can operate for an average of 8 weeks before it needs to be overhauled, a process which takes 9 days. The machine is operated 5 days a week. Compute the availability of this machine. (Round your answer to 3 decimal places.)
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Identification and assessment of sources of competitive advantage
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llustrate what is the very first thing these business owners MUST learn so as to prevent the outcome suggested above. Elucidate how might they best obtain this information/knowledge.
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Apply the industrial organization model and the resource-based models to determine how Apple corporation could earn above average returns.
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