Practical Operations Management
Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
Question
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Chapter 9, Problem 22P

(a)

Summary Introduction

Interpretation:

The party that will receive the contract, if MS Cinema was to use lowest price to award the contract.

Concept Introduction:

The main aim of the procurement process is of choosing the supplier’s offer. Different method may be used to evaluate the supplier.

(b)

Summary Introduction

Interpretation:

The party that would be selected by MS Cinema if liner averaging is used.

Concept Introduction:

Linear averaging is the numerically weighted valuation method employed in situations such as selecting the suppliers, ranking candidates, selecting a location, or awarding contacts. In this method, each factor score is multiplied by its weight and the entire sum is added to find the best option. The high value of the weighted score is the selected best option.

(c)

Summary Introduction

Interpretation:

The issue of price is twice as important to MS cinema as either quality or reliability and the score would DCC service earn under this weighting scheme.

Concept Introduction:

The main aim of the procurement process is the choosing the supplier’s offer. Different method may be used to evaluate the supplier.

(d)

Summary Introduction

Interpretation:

Suggestion on the janitorial service supplier assuming the weighting scheme described in part c.

Concept Introduction:

The main aim of the procurement process is the choosing the supplier’s offer. Different method may be used to evaluate the supplier.

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