Fernando Garza’s firm wishes to use factor rating tohelp select an outsourcing provider of logistics services. a) With weights from 1–5 (5 highest) and ratings 1–100 (100 high-est), use the following table to help Garza make his decision: RATING OF LOGISTICS PROVIDERS CRITERION WEIGHT OVERNIGHTSHIPPINGWORLDWIDEDELIVERY UNITEDFREIGHTQuality 5 90 80 75Delivery 3 70 85 70Cost 2 70 80 95b) Garza decides to increase the weights for quality, delivery, andcost to 10, 6, and 4, respectively. How does this change yourconclusions? Why?c) If Overnight Shipping’s ratings for each of the factors increaseby 10%, what are the new results?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Fernando Garza’s firm wishes to use factor rating to
help select an outsourcing provider of logistics services.

a) With weights from 1–5 (5 highest) and ratings 1–100 (100 high-
est), use the following table to help Garza make his decision:

RATING OF LOGISTICS PROVIDERS

CRITERION WEIGHT

OVERNIGHT
SHIPPING
WORLDWIDE
DELIVERY

UNITED
FREIGHT
Quality 5 90 80 75
Delivery 3 70 85 70
Cost 2 70 80 95
b) Garza decides to increase the weights for quality, delivery, and
cost to 10, 6, and 4, respectively. How does this change your
conclusions? Why?
c) If Overnight Shipping’s ratings for each of the factors increase
by 10%, what are the new results?

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