Bloom's Jeans is searching for new suppliers, and Debbie Bloom, the owner, has narrowed her choices to two sets. Debble

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Bloom S Jeans Is Searching For New Suppliers And Debbie Bloom The Owner Has Narrowed Her Choices To Two Sets Debble 1 (37.58 KiB) Viewed 34 times

Bloom's Jeans is searching for new suppliers, and Debbie Bloom, the owner, has narrowed her choices to two sets. Debble is very concerned about supply disruptions, so she has chosen to use three suppliers no matter what. For option 1, the suppliers are well-established and located in the same country. Debbie calculates the unique-event risk for each of them to be 3%. She estimates the probability of a nationwide event that would knock out all three suppliers to be 2.7%. For option 2, the suppliers are newer but located in three different countles Debbie calculates the "unique-event" risk for each of them to be 19%. She estimates the "super-event probability that would knock out all three of these suppliers to be 0.5% Purchasing and transportation costs would be $1,200,000 per year using option 1 and $1,210,000 per year using option 2. A total disruption would create an annualized loss of $550,000 a) The probability that all three suppliers will be disrupted using option 1 is b) The probability that all three suppliers will be disrupted using option 2 is c) The total annual purchasing and transportation cost plus expected annualized disruption cost for option 1 is $ (round your response to five decimal places) (round your response to five decimal places) d) The total annual purchasing and transportation cost plus expected annualized disruption cost for option 2 is $ e) Based on the total annual purchasing and transportation cost plus expected annualized disruption cost (round your response to the nearest whole number) (round your response to the nearest whole number) seems best