Component of company flagship product

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Elizabeth needs to decide which supplier to use for a key component of her company's flagship product. She plans to order 10,000 units of this component next year. She has narrowed her choices to two finalists: Beta and Delta. Beta's price is $50 per unit. Liz estimates that there is a 10% probability that Beta can only deliver 9,000 units. Delta's price is $45, but she believes there is a 20% probability that it can only deliver 9,000 units. If she has to go to the secondary market to source any shortfall, she believes she will pay $75 for the units she has to buy in that market. Which supplier should Liz select?. Please solve with excel.

Reference no: EM133132508

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