Factor Weight Rating of Suppliers Ranking of Suppliers Suppliers A B C D A в D Function 10 10 80 100 60 60 Cost 3 5 10 24 40 72 80 Service 9 4 7 72 32 40 56 Technical Assistance 5 7 9. 4 35 45 20 10 Credit Terms 2 4 3 8 8 6. 12 16 Total (rank of suppliers) 219 223 204 222 FIGURE 7.1 Supplier rating. 2. 669 6

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question

 If purchases were 45% of sales and other expenses were 45% of sales, what would be
the increase in profit if, through better purchasing, the cost of purchases was reduced
to 43% of sales?

Factor
Weight
Rating of
Suppliers
Ranking of
Suppliers
Suppliers
A
B
C
D
A
в
D
Function
10
10
80
100
60
60
Cost
3
5
10
24
40
72
80
Service
9
4
7
72
32
40
56
Technical
Assistance
5
7
9.
4
35
45
20
10
Credit
Terms
2
4
3
8
8
6.
12
16
Total (rank of suppliers)
219
223
204
222
FIGURE 7.1 Supplier rating.
2.
669
6
Transcribed Image Text:Factor Weight Rating of Suppliers Ranking of Suppliers Suppliers A B C D A в D Function 10 10 80 100 60 60 Cost 3 5 10 24 40 72 80 Service 9 4 7 72 32 40 56 Technical Assistance 5 7 9. 4 35 45 20 10 Credit Terms 2 4 3 8 8 6. 12 16 Total (rank of suppliers) 219 223 204 222 FIGURE 7.1 Supplier rating. 2. 669 6
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