Dual Sourcing: Higher Unit Cost vs Lower Expected Disruption Loss
This lesson is part of the course
In this lesson
You weigh the certain extra cost of a second battery-cell supplier against the expected disruption loss it avoids, and find the outage probability at which dual sourcing breaks even.
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Lessons in this course
- The Risk Register: Likelihood × Impact and a Heat Map Locked
- Supplier Concentration: HHI and Top-Supplier Share Locked
- Time to Recover vs Time to Survive, Node by Node Locked
- Safety Stock When Demand and Lead Time Both Vary Locked
- Cost of Disruption Scenarios: Lost Margin, Expediting & Expected Loss Locked
- Dual Sourcing: Higher Unit Cost vs Lower Expected Disruption Loss Locked
- The Inventory Buffer vs Service Level Curve Locked
- Resilience Investment ROI: Paying for Expected Loss Reduction Locked