Calculate the weighted average score for each supplier.

Problem 2: Supplier Selection Your sourcing department

Problem 2: Supplier Selection Your sourcing department

Question
Problem 2: Supplier Selection

Your sourcing department has received bids from three suppliers shown below
.

PERFORMANCE DIMENSION IMPORTANCE Supplier 1 Supplier 2 Supplier 3
On Time Delivery (% on time) 0.50 97% 94% 88%
Excess Capacity (square feet of excess space) 0.40 11k sq. ft. 45k sq. ft. 80k sq. ft.
Cost ($/unit) 0.10 $3.50/unit $3.75/unit $2.55/unit

A) Score each supplier’s bid using the following scale.

On Time Delivery Excess Capacity Cost
Range Score Range Score Range Score
<90% 1 <25k square feet 1 >$2.99 per unit 1
91%-93% 2 26k-35k square feet 2 $2.50-$2.98 per unit 2
94%-96% 3 36k-75k square feet 3 $2.25-$2.49 per unit 3
97%-98% 4 76k-125k square feet 4 $2.10-2.24 per unit 4
99%+ 5 126k+ square feet 5 <$2.10 per unit 5

B) Calculate the weighted average score for each supplier.
C) Which supplier should be selected based on these criteria?

Problem 2: Supplier Selection Your sourcing department


Attachments
soln.zip (8.13 KB)

Preview not available.

Place New Order
It's Free, Fast & Safe

"Looking for a Similar Assignment? Order now and Get a Discount!

Feeling Lucky?

Enter your email address to spin the wheel for a chance to win exciting offers.