Question 3 Using the weighted value index answer the following. (no decimals are

Question

Question 3

Using the weighted value index answer the following. (no decimals are needed)

What is the value index for Snappy? Blank 1

What is the value index for Coldment? Blank 2

What is the value index for ACE? Blank 3

What is the value index for Crafts? Blank 4

Based on the value index, which vendor do you select? Blank 5

You must select a vendor for hand tools for your factory. Importance (1 = completely unimportant, 5 = very important) Performance (1 = poor, 5 = excellent) The importance of the 4 areas measured is given in the following table. Price 3 Selection 2 Deliver speed 5 Quality 4 Performance of the major potential vendors are found below. Snappy Coldment Ace Crafts Price 4 5 5 4 Selection 5 1 3 2 Deliver speed 3 4 5 5 Quality 5 2 2 5

Explanation / Answer

Weighted value index :(Potential vendors performance * importance of areas measured)/sum of importance of areas measured

1) Value index for snappy = (3*4 + 2*5 + 5*3 + 4*5 )/(3+2+5+4) = 4 (4.07)

2) Value index for Coldement =  (3*5 + 2*1 + 5*4 + 4*2) /(3+2+5+4) = 3 (3.21)

3) value index for ACE =  (3*5 + 2*3 + 5*5 + 4*2) /(3+2+5+4) = 4 (3.86)

4) value index for Crafts = (3*4 + 2*2 + 5*5 + 4*5) /(3+2+5+4) = 4.36 = 4

5) value index for Crafts is highest so I will select the Crafts

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