SELECTION CRITERION ENGLAND CANADA Price of service from outsourcer 2 3 Nearness of facilities to client 1 Level of technology 1 3 History of successful outsourcing 1 3.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Strategic Planning, Core Competencies and Outsourcing
Clndia Pragram Technologies, Inc. , has narrowed its choice of outsourcing provider to two firms located in different countries. Pragram wants to decide which one of the two countries is the better choice, based on risk-avoidance criteria. She has polled her executives and established four criteria.
The resulting ratings for the two countries are presented in the table below, where l is a lower risk and 3 is a higher risk.                                                                                                                                 The executives have determined four criteria weightings: Price, with a weight of 0. 1; Nearness, with 0.6; Technology, with 0.2; and History, with 0.1.
a) Using the factor-rating method, which country would you select?
b) Double each of the weights used in part (a) (to 0.2, 1.2, 0.4, and 0.2, respectively).      What effect does this have on your answer? Why?
SELECTION CRITERION
ENGLAND
CANADA
Price of service from outsourcer
2
3
Nearness of facilities to client
1
Level of technology
1
3
History of successful outsourcing
1
3.
Transcribed Image Text:SELECTION CRITERION ENGLAND CANADA Price of service from outsourcer 2 3 Nearness of facilities to client 1 Level of technology 1 3 History of successful outsourcing 1 3.
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