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The Probability That Actual Supply Chain Demand Exceeds Average Demand

Question 26

Multiple Choice

The probability that actual supply chain demand exceeds average demand is estimated to be 5 percent of the year (365 days) or 18.25 summer days.What total costs are associated with Cnp,when it is determined that the loss of goodwill in the community averages $30,000 per incident? The events provoking such costs include brownouts,power failures,etc.


A) $500,547
B) $547,500
C) $500,000
D) $365,000

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