Which of the following is NOT an element of the disaster risk decision tree model?
A) the buyer's financial loss incurred in a supply cycle if supplier i were disrupted
B) the marginal cost of managing a supplier
C) the buyer's financial loss incurred in a supply cycle if all suppliers were disrupted
D) the probability of a "super-event" that would disrupt all suppliers simultaneously
E) the probability of a "unique-event" that would disrupt only one supplier

Question

Quizplus · Accepted Answer

The disaster risk decision tree model is used to assess the potential risk associated with different suppliers and develop a strategy for mitigating that risk. The elements of the model typically include the probability of disruption for each supplier, the impact of disruption on the buyer's supply chain, and the cost of managing that risk. Option A, the buyer's financial loss incurred in a supply cycle if supplier I were disrupted, is not an element of the model as it focuses on the buyer's specific financial loss rather than the overall risk associated with the supplier.

Which of the Following Is NOT an Element of the Disaster