Assignment task:
Falconn is a manufacturer of hard drives and the company is trying to select a single supplier for the printed circuit boards (PCBs) that go into its main product. Two companies can provide the necessary PCBs - SFCircuits and Jaycon. SFCircuits has a reputation for its products and charges a higher price on account of its reliability of supply and delivery. SFCircuits dedicates plant capacity to each 3 customer, and therefore supply is ensured. This allows SFCircuits to charge $12 for a PCB. Jaycon is a small supplier that has limited capacity but charges only $9 for a unit. Its reliability of supply, however, is in question. Jaycon may not have enough capacity and orders to Jaycon are not guaranteed. In a year of high demand for PCBs, Jaycon will have at most 90, 000 units available for Falcom. In low-demand years, all demand will be satisfied. If Falconn does not get PCBs from its suppliers, it needs to buy them on the spot market to make up for any shortage. Spot market price is $20 per unit when demand is low and $40 when demand is high. Demand in the PCB market has a 75% chance of being high