Answered: RATINGS OF OUTSOURCE PROVIDERS FACTOR…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

Rao Technologies, a California-based high-tech
manufacturer, is considering outsourcing some of its electron-
ics production. Four firms have responded to its request for
bids, and CEO Mohan Rao has started to perform an analy-
sis on the scores his OM team has entered in the table below.

Weights are on a scale from 1 through 30, and the outsourc-
ing provider scores are on a scale of 1 through 5. The weight
for the labor factor 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
D
Labor
w
5
3
Quality procedures
Logistics system
30
2
3
5
1
3
4
3
Price
25
5
3
4
Trustworthiness
3.
2
3
Technology in place
Management team
15
2
5
4
15
4
2
1

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