1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vladimir79 [104]
1 year ago
11

Suppose that the manager of a company has estimated the probability of a super-event sometime during the next five years that wi

ll disrupt all suppliers as 5%, and the probability of a unique-event that would disrupt one of them sometime during the next five years to be 10%. Supplier management costs during this period are $30,000 per supplier. The financial cost incurred if all suppliers are disrupted at the same time is estimated to be $2,000,000. Assume that up to five nearly identical suppliers are available. How many suppliers should the manager use?
Business
1 answer:
Inessa [10]1 year ago
5 0

Based on the financial cost incurred if supply is disrupted and the probability that this happens, the number of suppliers the manager should use is Two (2) suppliers.

<h3>How many suppliers should be used?</h3>

If 3 suppliers are used, the probability of disruption would be:

= Probability of super event + (1 - Probability of super event) x Probability of unique event^ number of suppliers

= 5% + (1 - 5%) x 10%³

= 0.145

The payoff would be:

= 2 million x 0.145 + 30,000

= $191,900

With two suppliers:
= 2 million x (5% + (1 - 5%) x 10%²) + 30,000

= $169,000

With one supplier :

= 2 million x (5% + (1 - 5%) x 10%) + 30,000

= $320,000

The lowest cost is with 2 suppliers so this should be chosen.

Find out more on probability of disruption at brainly.com/question/16625463.

#SPJ1

You might be interested in
Shaun is the manager of a warehouse operated by a department store. he is trusted by his subordinates because he shares informat
Bumek [7]
The fact that Shaun,who is the manager of a warehouse operated by a department store is trusted by his subordinates because he shares information freely, is reliable, and shows extremely good judgment while handling any type of crisis. means that Shaun is exhibiting the following dimensions of trust: consistency, loyalty, and openness. W<span>hen a manager’s behavior toward employees is consistent over a period of time, employees can reasonably predict that manager’s behavior.</span>

4 0
3 years ago
Kim placed an order with her broker for 800 shares of each of three IPOs being offered this week. Each of the IPOs has an offer
Ainat [17]

Answer:

B. $3,251

Explanation:

Stock shares × Allocated price = Shares closing price

A 700 ×$ 29.15 =$20,405

B 430 ×33.86=$14,560

C 340× 36.43 =$12,386

Total $47,351

Stock shares × IPO price= Shares IPO price

A 700 ×$30=$21,000

B 430×$30= $12,900

C 340×$30=$10,200

Total $44,100

Total Profits $47,351-$44,100

=$3,251

Therefore Kim's total profit on these three stocks at the end of the first day of trading will be $3,251

8 0
3 years ago
Johnson Waterworks Company provides plumbing services. The company is a sole proprietorship. Transactions during the first year
emmasim [6.3K]

Answer:

Given:

Contributed $12,000 cash in exchange for capital,

Paid $1,000 for equipment to be used for plumbing repairs,

Borrowed $11,000 from a local bank and deposited the money in the checking account,

Paid $200 in rent for the year,

Paid $300 for plumbing supplies to be used on various jobs next year,

Completed a plumbing repair for a law firm and received $2,900,

The plumbing supplies of $ 300 are left at the end of the year.

<u><em>Total assets at the end of the first year = $25,700</em></u>

7 0
3 years ago
The political business cycle refers to Group of answer choices the fact that about every four years some politician advocates gr
kirill [66]

Answer:

the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected.

Explanation:

A political business cycle can be defined as a business cycle that typically arises from the manipulation and tweaking of economic policy tools such as fiscal policy and monetary policy by incumbent (serving) politicians, in order to stimulate and enhance the economy of a particular country before an election. Thus, this would go a long way to boost the chances of the candidate representing the particular political party and reelection into office by the people.

Hence, the political business cycle refers to the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected.

The Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.

Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country.

Basically, the four (4) major expenditure categories of GDP are consumption (C), investment (I), government purchases (G), and net exports (N).

Additionally, Gross Domestic Products (GDP) of a country's economy gives an insight to it's social well-being such as Real GDP.

4 0
2 years ago
Input costs that require an outlay of money by the firm are called _______ costs while input costs that do not require an outlay
kolbaska11 [484]

Answer: Explicit costs , Implicit cost.

Explicit Costs is an Input costs that require an outlay of money by the firm. e.g (Paying for supplies, paying workers).

Implicit Costs is an Input costs that do not require outlay of money by the firm. e.g (Could be working somewhere else and making money but giving up the money you could be making because of where you work now).

3 0
3 years ago
Other questions:
  • Quizlet hazel field farms provide local restaurants with organic food and vegetables that have been grown without the use of pes
    9·1 answer
  • Stock Investment Transactions On September 12, 2,000 shares of Aspen Company were acquired at a price of $50 per share plus a $2
    9·1 answer
  • If the San Diego Opera decreases the price of their opera tickets and their total revenue falls, then this suggests that, at the
    10·1 answer
  • A brand of wine is priced at only $5 per bottle, far below the market price of most high quality wines. Before any reputation ex
    5·1 answer
  • The solicitation of a consumer's consent (called "opt-in") to receive email and advertising based on personal data supplied by t
    6·1 answer
  • Alex's Furniture Mart produces and sells tables in a perfectly competitive market. When Alex's Furniture Mart produces and sells
    8·1 answer
  • Bernson Corporation is using a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $49
    10·1 answer
  • In contrast to the post-World War II period, before 1940 the government rarely intervened in the economy to influence inflation
    14·1 answer
  • What is corporate social performance and how does this differ from traditional corporate performace?
    10·1 answer
  • If a car company collaborated with a sheet metal supplier, the car company would be the supplier's ______.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!