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 being the highest) and ratings from 1 100 (100 being the highest), use the following table to help Garza make his decision. In the following table, compute the weighted average score for each of the three companies (enter your responses rounded to one decimal place). Criterion Quality Delivery Cost Weighted average score: The best outsource provider is ) Garza decides to increase the weights for quality, delivery, and cost to 10, 6, and 4, respectively. Weight Overnight Worldwide (W) Shipping Delivery 89 78 69 87 66 77 0 532 United Freight 80 67 99

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 being the highest) and ratings from 1 100 (100 being the highest), use the following table to help Garza make his decision.
In the following table, compute the weighted average score for each of the three companies (enter your responses rounded to one decimal place).
Criterion
Quality
Delivery
Cost
Weighted average score:
The best outsource provider is
b) Garza decides to increase the weights for quality, delivery, and cost to 10, 6, and 4, respectively.
If each weight is doubled, the best outsource provider is
How does this change your conclusions?
OA. The conclusion changes since the weighted averages change.
O B. The conclusion does not change but the weighted averages change.
OC. The conclusion changes but the weighted averages do not change at all.
OD. The conclusion does not change since the weighted averages do not change at all.
c) If Overnight Shipping's ratings for each of the factors increase by 10%, what are the new results?
If Overnight Shipping's ratings for each of the factors increase by 10%, the best outsource provider is
Weight Overnight Worldwide United
(W) Shipping Delivery Freight
89
78
80
69
87
67
66
77
99
532
with a weighted average score of
(enter your response rounded to one decimal place)
Transcribed Image Text: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 being the highest) and ratings from 1 100 (100 being the highest), use the following table to help Garza make his decision. In the following table, compute the weighted average score for each of the three companies (enter your responses rounded to one decimal place). Criterion Quality Delivery Cost Weighted average score: The best outsource provider is b) Garza decides to increase the weights for quality, delivery, and cost to 10, 6, and 4, respectively. If each weight is doubled, the best outsource provider is How does this change your conclusions? OA. The conclusion changes since the weighted averages change. O B. The conclusion does not change but the weighted averages change. OC. The conclusion changes but the weighted averages do not change at all. OD. The conclusion does not change since the weighted averages do not change at all. c) If Overnight Shipping's ratings for each of the factors increase by 10%, what are the new results? If Overnight Shipping's ratings for each of the factors increase by 10%, the best outsource provider is Weight Overnight Worldwide United (W) Shipping Delivery Freight 89 78 80 69 87 67 66 77 99 532 with a weighted average score of (enter your response rounded to one decimal place)
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