3.5. Blaize Manufacturing Company is using a weighted criteria evaluation system

Question

3.5. Blaize Manufacturing Company is using a weighted criteria evaluation system to certify suppliers. a. Determine the total weighted score for the supplier shown below. b. Based on the evaluation system and weights used by this firm, what is their purchasing objective? c. Give an example of a real company that might be using this type of strategy d. If Blaize Mfg, classifies their vendors based on the following scores, how well is this supplier doing? Unacceptable (less than 50) .Conditional (between 50 and 70) Certified (between 70 and 90) Preferred (greater than 90) Performance Criteria Weight Technology Quality Environmental 25% 20% 15% Score (0-100) 85 90 84 Responsibility Price On-time deliveries Flexibility Customer Service 15% 10% 5% 10% 86 84 83

Explanation / Answer

a) Total weighted score for the supplier = (Weight*Score) = .25*85+.2*90+.15*84+.15*77+.1*86+.05*84+.1*83 = 84.5

b) Based on the evaluation system and the weights, the purchasing objective is to choose the supplier with high capability in terms of Technology and Quality, followed by environmental responsibility, price, on-time deliveries, customer service, and flexibility in that order.

c) A real company that might be using this type of strategy is a company like Apple or Microsoft, who outsource manufacturing. These companies might be using this type of evaluation criteria to select the contract manufacturer.

d) This supplier has scored 84.5. Based on the given classification, this supplier lies in the Certified class. So the supplier is doing well, however, it is still falling short of preferred class.

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