RATINGS OF OUTSOURCE PROVIDERS FACTOR WEIGHT A B C Labor 5 4 Quality procedures 30 2 3 Logistics system 3 4 3 Price 25 3 4 4 Trustworthiness 5 3 2 3 Technology in place 15 2 5 4 Management team 15 4 2 1. 4. U m n m

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Rao Technologies, a California-based high-tech manufacturer, is considering outsourcing some of its electronics p roduction. Four firms have responded to its request for bids, and
CEO Mohan Rao has started to perform an analysis on the scores his OM team has entered in the table below.                                                                                                                                             Weights are on a scale from 1 through 30, and the outsourcing provider scores are on a scale of 1 through 5. The weight for the labor fac tor is shown as a w because Rao's OM team cannot agree on a value for this weight. For what range of values of w, if any, is
company C a recommended outsourcing provider, according to the factor-rating method?
RATINGS OF OUTSOURCE
PROVIDERS
FACTOR
WEIGHT
A
B
C
Labor
5
4
Quality procedures
30
2
3
Logistics system
3
4
3
Price
25
3
4
4
Trustworthiness
5
3
2
3
Technology in place
15
2
5
4
Management team
15
4
2
1.
4.
U m n m
Transcribed Image Text:RATINGS OF OUTSOURCE PROVIDERS FACTOR WEIGHT A B C Labor 5 4 Quality procedures 30 2 3 Logistics system 3 4 3 Price 25 3 4 4 Trustworthiness 5 3 2 3 Technology in place 15 2 5 4 Management team 15 4 2 1. 4. U m n m
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