Ed Coan, president of Powerlifting inc., wants to create a portfolio of suppliers for the weight plates used in the company's products. Based on historical data and climate and geological forecasts, he estimates the probability of a "super-event" that would negatively impact all suppliers simultaneously to be 1% during the supply cycle. He further estimates the "unique-event" risk for any of the potential suppliers to be 3%. The marginal cost of managing an additional supplier is $25 thousand dollars, and the financial loss incurred if a disaster caused all suppliers to be down simultaneously is $10 million dollars. How many suppliers should he use? Assume that up to 3 nearly identical suppliers are available. (Do not round your intermediate calculations. Only enter a number. For ex:3. @orsdemir, Copyrighted content. Cannot be posted.)

Ed Coan, president of Powerlifting inc., wants to create a portfolio of suppliers for the weight plates used in the company's products. Based on historical data and climate and geological forecasts, he estimates the probability of a "super-event" that would negatively impact all suppliers simultaneously to be 1% during the supply cycle. He further estimates the "unique-event" risk for any of the potential suppliers to be 3%. The marginal cost of managing an additional supplier is $25 thousand dollars, and the financial loss incurred if a disaster caused all suppliers to be down simultaneously is $10 million dollars. How many suppliers should he use? Assume that up to 3 nearly identical suppliers are available. (Do not round your intermediate calculations. Only enter a number. For ex:3. @orsdemir, Copyrighted content. Cannot be posted.)

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

Question 2 an estimate of the number of times a customer wanted a The Texas Gladiators won the Super Bowl last year. As a cap when it was not available but did not aşk for it.) result, sportswear such as hats, sweatshirts, sweat- pants, and jackets with the Gladiator's togo are popular. The Gladiators operate an apparel store outside the foot- ball stadium. It is near a busy highway, so the store has heavy customer traffic throughout the year, not just on game days. In addition, the stadium has high school or Week Demand Week Demand Week Demand 1 38 11 28 21 52 2 51 12 41 22 38 3 25 13 37 23 49 4 60 14 44 24 46 college football and soccer games almost every week in the fall, and baseball games in the spring and summer. The most poputar single item the stadium store sells is a red and silver baseball-style cap with the Gladiators' logo on it. The cap has an elastic headband inside it, which conforms to different head sizes. However, the store has 5 35 15 45 25 47 42 16 56 26 41 29 17 62…
Question 2CWD Manufacturing makes three components for sale to refrigeration companies. Thecomponents are processed on two machines: a shaper and a grinder. The times (in minutes)required on each machine are as follows: Machine Component Shaper Grinder 1 6 4 2 4 5 3 4 2 The shaper is available for 120 hours, and the grinder is available for 110 hours. No more than200 units of component 3 can be sold, but up to 1000 units of each of the other components canbe sold. In fact, the company already has orders for 600 units of component 1 that must besatisfied. The profit contributions for components 1, 2, and 3 are $8, $6, and $9, respectively. (see image) If there are two possible answers one will suffice. Where necessary a range analysis must be shown.(convert to minutes)a) What is the optimal solution (in words)? b) An additional 4 hours of shaper time became available. Evaluate the effect? Explainc) Two hours of Grinder time was lost. Evaluate the effect? d) An additional…
Every organization has certain functional areas, for example divisions, departments, marketing, IT. Question 27 options: True False
QUESTION #1 Mrs. Johnson, the owner of a small manufacturing business has patented a new device for kitchen appliance. Before trying to commercialize the device and add it to her existing product line, the she wants reasonable assurance of success. Variable costs are estimated at $8 per unit produced and sold. Fixed costs are about $60,000 per year. a. Forecasted sales for the first year are 15,000 units if the price is reduced to $20. With this pricing strategy, what would be the product's total contribution to profits in the first year? b. If the selling price is set at $30, how many units must be produced and sold to break even? Use both algebraic and graphic approaches
Q7.An example of a leading performance measure is: a. Number of new customers b. Production cycle time
Question 3: Compute the probability of randomly drawing 7 cards from a deck of cards by getting 4 Hearts and 3 Aces. What would be the Expected Monetary Value (EMV) if 400 USD is paid the moment all of these cards are drawn? Write the implication of the EMV.
D4)
The design, operation, and improvement of the systems that create and deliver the firm's primary products and services. Question 7 options: True False
Question 15 $1 h $0.50 $0.75 Estimate the cost of a stock-out if the margin is $1 and half the time the customer simply doesn' buy anything. $0.25 B Question 16 nwacc.instructure.com TH 2 mond of 6. Unfortunatel:
Please do not give solution in image format thanku
QUESTION 12 What effect of changing C3 from 6 to 5.71 on the final value of objective function? 4< C3 c Knownig that Cij 5X1 S1 S2 RHS 4.5X2 -1.25 6X3 as -0.75 -2.5 Basis 13.75 12.5 -0.125 X3 S2 X1 6. 11.25 0. 1.25 1. 0.5 -0.5 5 -0.75 0.75 C-Z 0100o