Machado Construction Is Considering Two Options for Its Supplier Portfolio

question 1

Essay

Machado Construction is considering two options for its supplier portfolio. Option 1 uses two local suppliers. Each has a "unique-event" risk of 8%, and the probability of a "super-even" that would disable both at the same time is estimated to be 2.5%. Option 2 uses two suppliers located in different countries. Each has a "unique-event" risk of 18%, and the probability of a "super-event" that would disable both at the same time is estimated to be 1.2%.
(a) What is the probability that both suppliers will be disrupted using option 1?
(b) What is the probability that both suppliers will be disrupted using option 2?
(c) Which option would provide the lowest risk of a total shutdown?

Comprehend the concept, process, and efficiency of selection sort in organizing data.

Grasp the fundamentals of binary search, its application conditions, and its performance in terms of comparisons.

Distinguish between different sorting and searching algorithms based on their characteristics and implementational requirements.

Analyze the efficiency and number of comparisons involved in various searching and sorting techniques.

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Definitions:

Purchase Decision Process

The stages a buyer goes through in recognizing a need, searching for information, evaluating alternatives, purchasing, and post-purchase behavior.

Antecedent States

Internal states or conditions of consumers that influence their decision-making processes before they make a purchase.

Consumer Involvement

The degree of interest and personal relevance that a consumer perceives in a product or service.

Product Knowledge

An understanding of a product's features, benefits, and uses, which is crucial for effective sales and marketing.