a)
To determine: The suitable outsourcing provider for logistics services using factor- rating method.
Introduction:
Factor-rating method:
The factor-rating method is a quantitative approach to make a decision from various alternatives such that the decision is beneficial to the firm involved. This method is utilized to decide on a new layout, new locations, best supplier, outsourcing providers, and so on.
b)
To determine: The suitable outsourcing provider for logistics services using factor- rating method when the weights are changed.
Introduction:
Factor-rating method:
The factor-rating method is a quantitative approach to make a decision from various alternatives such that the decision is beneficial to the firm involved. This method is utilized to decide on new layout, new locations, best supplier, outsourcing providers etc.
c)
To determine: The suitable outsourcing provider for logistics services using factor- rating method when there is a 10% increase in Overnight Shipping ratings.
Introduction:
Factor-rating method:
The factor-rating method is a quantitative approach to make a decision from various alternatives such that the decision is beneficial to the firm involved. This method is utilized to decide on new layout, new locations, best supplier, outsourcing providers, and so on.
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Operations Management
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- Victor Pimentel, purchasing manager of Office Supply Center of Mexico, is searching for a new supplier for its paper. The mostimportant supplier criteria for Victor include paper quality, delivery reliability, customer service, and financial condition, and hebelieves that paper quality is twice as important as each of the other three criteria. Victor has narrowed the choice to two suppliers,and his staff has rated each supplier on each criterion (using a scale of 1 to 100, with 100 being highest), as shown in the followingtable: PAPER QUALITY DELIVERY RELIABILITY CUSTOMER SERVICE FINANCIAL CONDITIONMonterrey Paper 85 70 65 80Papel Grande 80 90 95 75Use the factor-weighting approach to determine the best supplier choice.arrow_forwardFernando Garza’s firm wishes to use factor rating tohelp select an outsourcing provider of logistics services. a) With weights from 1–5 (5 highest) and ratings 1–100 (100 high-est), use the following table to help Garza make his decision: RATING OF LOGISTICS PROVIDERS CRITERION WEIGHT OVERNIGHTSHIPPINGWORLDWIDEDELIVERY UNITEDFREIGHTQuality 5 90 80 75Delivery 3 70 85 70Cost 2 70 80 95b) Garza decides to increase the weights for quality, delivery, andcost to 10, 6, and 4, respectively. How does this change yourconclusions? Why?c) If Overnight Shipping’s ratings for each of the factors increaseby 10%, what are the new results?arrow_forwardSubject: Channel management Q): list down the selection criteria for choosing the following for a dairy products company (cheese, margarine, butter etc) a) distributors b) dealersarrow_forward
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