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Operations Management: Sustainability and Supply Chain Management, Twelfth Edition
book

Operations Management: Sustainability and Supply Chain Management, Twelfth Edition

by Jay Heizer, Barry Render, Chuck Munson
February 2016
Intermediate to advanced
480 pages
219h 58m
English
Pearson
Content preview from Operations Management: Sustainability and Supply Chain Management, Twelfth Edition

Solved Problems

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Solved Problem S11.1

Jon Jackson Manufacturing is searching for suppliers for its new line of equipment. Jon has narrowed his choices to two sets of suppliers. Believing in diversification of risk, Jon would select two suppliers under each choice. However, he is still concerned about the risk of both suppliers failing at the same time. The “San Francisco option” uses both suppliers in San Francisco. Both are stable, reliable, and profitable firms, so Jon calculates the “unique-event” risk for either of them to be 0.5%. However, because San Francisco is in an earthquake zone, he estimates the probability of an event that would knock out both suppliers to be 2%. The “North American ...

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Publisher Resources

ISBN: 9780134422404