Claudia Pragram Technologies, Inc., has narrowed its choice of outsourcing provider to two firms located in dif-ferent countries. Pragram wants to decide which one of the two countries is the better choice, based on risk-avoidance criteria. She has polled her executives and established four crite-ria. The resulting ratings for the two countries are presented in the table below, where 1 is a lower risk and 3 is a higher risk. SELECTION CRITERION ENGLAND CANADAPrice of service from outsourcer 2 3Nearness of facilities to client 3 1Level of technology 1 3History of successful outsourcing 1 2The executives have determined four criteria weightings: Price,with a weight of 0.1; Nearness, with 0.6; Technology, with 0.2;and History, with 0.1.a) Using the factor-rating method, which country would youselect?b) Double each of the weights used in part (a) (to 0.2, 1.2, 0.4,and 0.2, respectively). What effect does this have on youranswer? Why?
Claudia Pragram Technologies, Inc., has narrowed
its choice of outsourcing provider to two firms located in dif-
ferent countries. Pragram wants to decide which one of the
two countries is the better choice, based on risk-avoidance
criteria. She has polled her executives and established four crite-
ria. The resulting ratings for the two countries are presented in
the table below, where 1 is a lower risk and 3 is a higher risk.
SELECTION CRITERION ENGLAND CANADA
Price of service from outsourcer 2 3
Nearness of facilities to client 3 1
Level of technology 1 3
History of successful outsourcing 1 2
The executives have determined four criteria weightings: Price,
with a weight of 0.1; Nearness, with 0.6; Technology, with 0.2;
and History, with 0.1.
a) Using the factor-rating method, which country would you
select?
b) Double each of the weights used in part (a) (to 0.2, 1.2, 0.4,
and 0.2, respectively). What effect does this have on your
answer? Why?
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