Question

NeedIT Industries is working on evaluating the design of a new supply chain for a new product. NeedIT believes that a super event meaning that the all suppliers cannot produce the desired result is 0.06. But for individual suppliers the probability that the desired result is not achieved is 0.27. If NeedIT wants the overall probability that all suppliers cannot deliver the desired result to be no larger than 0.062, what is the minimum number of suppliers?

Answer 1

Need IT Industries is working on evaluating the design of a new supply chain for a new product.
Need IT believes that a super event meaning
that the all suppliers cannot produce the desired result is 0.06. so that mean estimate is 0.06
If Need IT wants the overall probability that all suppliers cannot deliver the desired result
to be no larger than 0.062,

Compute Sample Size ( n ) = n=(Z/E)^2*p*(1-p)
Z a/2 at 0.05 is = 1.96
Sample Proportion = 0.062
ME = 0.06
n = ( 1.96 / 0.06 )^2 * 0.062*0.938
= 62.059 ~ 63          
the minimum number of suppliers =63