Principles Of Operations Management
Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
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Chapter 11.S, Problem 2DQ
Summary Introduction

To determine: Whether the importance of unique-event risk increase or decrease when the probability of super-event risk increases.

Introduction:

Unique-event Risk:

In unique-event risk, the disruption occurs to only one supplier. When such phenomenon occurs, one supplier can be chosen over other suppliers. Selection of more than one supplier is necessary to overcome unique-event risk.

Super-event Risk:

The disruption rate to suppliers is high in super-event risk because all suppliers are affected in super-event risk. Chances for occurrence of super-event risks are very low. However firms must make proactive arrangement to overcome super-event risks.

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Students have asked these similar questions
Consider the planned construction of a new office building in a downtown area of a large city when office space is in surplus demand (i.e. more office space than users). Construct a risk analysis that examines the various forms of risk (technical, commercial, financial etc) related to the creation of this office building
How would you go about calculating the likelihood of a "super-event" or a "unique event?" What variables would you take into account ?
Consider the planned construction of a new office building in a downtown area of a large city when office space is in surplus demand (i.e. more office space than users).Construct a risk analysis that examines the various forms of risk (technical, commercial, financial etc) related to the creation of this office building.   Explain how the analysis would change if office space were in high demand.

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Principles Of Operations Management

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