Telecomp, a computer manufacturer with a global supply chain, is adding a new supplier: Operations Management & Analytics Assignment, UNM, Malaysia
|University of Nottingham Malaysia (UNM)
Telecomp, a computer manufacturer with a global supply chain, is adding a new supplier for some of its component parts, and the suppliers it’s considering are in China, India, Thailand, and the Philippines. As part of its risk management program, Telecomp wants to assess the possible impact of a supplier shutdown in the event of a natural disaster, such as a flood, fire, or an earthquake.
The following payoff table summarizes Telecomp’s losses (in millions of dollars) for supplier shutdowns given different levels of event severity. Determine the best decision using each of the following criteria. a. Minimin (Best of the Best) b. Minimax (Best of the Worst) (2 marks) c. Equal likelihood (5 marks) d. Hurwicz (α = 0.7) (5 marks) e. Minimax regret (5 marks) f. Which supplier would you recommend to Telecom and why? (6 marks)
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