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). Weight Overnight Criterion Quality Delivery Cost (W) Shipping Worldwide Delivery United Freight 5 88 80 72 3 71 90 72 2 71 85 97 Weighted average score: 79.5 84 77 The best outsource provider is Worldwide Delivery 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 Worldwide Delivery . How does this change your conclusions? A. The conclusion changes since the weighted averages change. B. The conclusion does not change but the weighted averages change. C. The conclusion changes but the weighted averages do not change at all. D. 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 Overnight Shipping, with a weighted average score of one decimal place). (enter your response rounded to
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). Weight Overnight Criterion Quality Delivery Cost (W) Shipping Worldwide Delivery United Freight 5 88 80 72 3 71 90 72 2 71 85 97 Weighted average score: 79.5 84 77 The best outsource provider is Worldwide Delivery 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 Worldwide Delivery . How does this change your conclusions? A. The conclusion changes since the weighted averages change. B. The conclusion does not change but the weighted averages change. C. The conclusion changes but the weighted averages do not change at all. D. 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 Overnight Shipping, with a weighted average score of one decimal place). (enter your response rounded to
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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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).
Weight Overnight
Criterion
Quality
Delivery
Cost
(W)
Shipping
Worldwide
Delivery
United
Freight
5
88
80
72
3
71
90
72
2
71
85
97
Weighted average score:
79.5
84
77
The best outsource provider is Worldwide Delivery
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 Worldwide Delivery .
How does this change your conclusions?
A. The conclusion changes since the weighted averages change.
B. The conclusion does not change but the weighted averages change.
C. The conclusion changes but the weighted averages do not change at all.
D. 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 Overnight Shipping, with a weighted average score of
one decimal place).
(enter your response rounded to
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