Business, 19.11.2019 05:31 angeline2004

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 at least 2 weeks is 3%. such a total shutdown would cost the company approximately $480 comma 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 $14 comma 800 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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