SUPPLIER RATING UNDER LOW, MODERATE, AND HIGH LEVELS OF DEMAND Local Supplier National Supplier International Supplier Weight Low Moderate High Low Moderate High Low Moderate High Product Quality 0.35 8 7 7 7 Delivery Speed 0.15 9 7 6 4 7 Product Price 0.25 7 9. 7 7 9. Environmental Impact 0.25 7 7 7 8
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Adelie Enterprises is exploring a new service to provide weekly delivery of grocery items to homes in the greater Greenwood area. The company’s customers place Web-based orders and Adelie’s team assembles and delivers the orders in specially designed cardboard boxes. Management, interested in locating a supplier that can provide boxes cheaply and efficiently, has discovered that each potential supplier’s ability to satisfy the company’s requirements is influenced by the level of demand. The following table provides Adelie’s vendor selection criteria, criterion weights, and rankings (1–10 with 10 being the highest) under the assumption that low, moderate,or high demand is generated for their service.
a. Which supplier should be selected if there is low demand for Adelie’s new service? Which supplier should be selected under moderate demand assumptions? Under high demand assumptions?
b. Which supplier is selected if Adelie evaluates each alternative using a Maximin decision criterion (see Supplement A, “Decision Making”)?
c. Which supplier achieves the highest expected ranking if the probability of low demand is 35 percent, moderate demand is 45 percent, and high demand is 20 percent?
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