A company is deciding between 2 foreign firms to provide its call center service
ID: 2748102 • Letter: A
Question
A company is deciding between 2 foreign firms to provide its call center services. A factor-rating method is used. Factors are rated on a scale of 1-10, with 10 being the best score.
A: If the factors are weighted equally (respective weights of .3333), which firm is preferred?
B: Suppose a consultant recommended that Factor 2 be 3 times as important as Factor 1, while Factor 3 should be six times as important as Factor 1. Which firm is best now using a weighted method? (Round your weights to the nearest four decimal places.)
Can you please show the work to help me better understand?
Firm
Factor 1
Factor 2
Factor 3
A
10
8
9
B
5
8
6
Firm
Factor 1
Factor 2
Factor 3
A
10
8
9
B
5
8
6
Explanation / Answer
6.27
As A shows better rating. we should select firm A
6.5
In second case also A should be selected.
1 Firm A Weighted averge = (10*0.333+8*0.3333+9*0.333)/(0.33+0.33+0.33) 8.91 Firm B Weighted averge = (5*0.333+8*0.333+6*0.333)/(0.33+0.33+0.33)6.27
As A shows better rating. we should select firm A
2 Let the factor 1 be x So factor 2= 3*x and factor 3= 6*x so total weightage = x+3x+6x=10x 10x= 1 so x=1/10=0.1 Factor A=0.1, B=0.3,C=0.6 Firm A Weighted averge = (10*0.1+8*0.3+9*0.6)/(0.1+0.3+0.6) 8.8 Firm B Weighted averge = (5*0.1+8*0.3+6*0.6)/(0.1+0.3+0.6)6.5
In second case also A should be selected.
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