Average annual loss due to disruptions at supplier

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Reference no: EM133661469

Question

The following figure shows the supply chain for Product G. The retailer receives shipments of product G from two separate plants, both of whom rely on a critical input from the same supplier. The plants and the retailer are perfectly reliable. However, in any given year, the supplier experiences an average of 2 disruptions, each of which lasts an average of 3 weeks. The retailer's weekly profit from Product G is $2500. What is the retailer's average annual loss due to disruptions at the supplier?

Reference no: EM133661469

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