A company is about to select a vendor for its outsourcing activity. Five critical criteria, and their importance weights, are shown below. Three vendors are rated (Scores from 1 to 10 with a score of 10 the highest) and their scores are listed below. Use the factor-weighting approach to determine the choice of the vendor. Comment on the use of the factor-weighting approach in selecting the vendor in this situation. Weight Vendor 1 Vendor 2 Vendor 3 Customer service 0.11 9 7 3 Delivery speed Reliability Product quality Financial performance 0.22 6 7 9 0.20 3 4 9 0.32 8. 0.15 5 9. 4
A company is about to select a vendor for its outsourcing activity. Five critical criteria, and their importance weights, are shown below. Three vendors are rated (Scores from 1 to 10 with a score of 10 the highest) and their scores are listed below. Use the factor-weighting approach to determine the choice of the vendor. Comment on the use of the factor-weighting approach in selecting the vendor in this situation. Weight Vendor 1 Vendor 2 Vendor 3 Customer service 0.11 9 7 3 Delivery speed Reliability Product quality Financial performance 0.22 6 7 9 0.20 3 4 9 0.32 8. 0.15 5 9. 4
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:A company is about to select a vendor for its outsourcing activity. Five critical criteria,
and their importance weights, are shown below. Three vendors are rated (Scores from 1
to 10 with a score of 10 the highest) and their scores are listed below. Use the
factor-weighting approach to determine the choice of the vendor. Comment on the use
of the factor-weighting approach in selecting the vendor in this situation.
Weight Vendor 1 Vendor 2 Vendor 3
Customer service
0.11
9
7
3
Delivery speed
Reliability
Product quality
Financial performance
0.22
6
7
9
0.20
3
4
9
0.32
8.
0.15
5
9.
4
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