As purchasing agent for Eynan Enterprises in Richmond, Virginia, you ask your bu
ID: 371115 • Letter: A
Question
As purchasing agent for Eynan Enterprises in Richmond, Virginia, you ask your buyer to provide you with a ranking of "excellent" (worth 4 points), "good" (3 points), fair (2 points), or "poor" (1 point) for a variety of characteristics for two potential vendors, Donna Inc. (D) and Kay Corp. (K). You suggest that "Products" total be weighted 0.4, the "Company" total be weighted 0.2, and the "Service" and "Sales" totals each be weighted 0.2. The buyer has returned the following ranking. Which of the two vendors would you select? Click the icon to view the rankings You should choose vendor , with a weighted score of Enter your response rounded to one decima place. Either Kay Corp. or Donna Inc. Donna Ind. Kay Corp.Explanation / Answer
Given are following numbers for scores :
Excellent = 4
Good =
Fair = 2
Poor = 1
For attribute “Company”:
Total score for Kay Corp
= 1 Excellent + 2 Good + 3 Fair + 1 Poor
= 1 x 4 + 2 x 3 + 3 x 2 + 1 x 1
= 4 + 6 + 6 + 1
= 17
Total score for Donna Inc
= 5 Fair + 2 Poor
= 5 x 2 + 2 x 1
= 10 + 2
= 12
For attribute “Service”:
Total score for Kay Corp
= 3 Good
= 3 x 3
= 9
Total score for Donna Inc
= 2 Good + 1 Fair
= 2 x 3 + 1 x 2
= 8
For attribute “Products” :
Total score for Kay Corp
= 1 Excellent + 2 Fair
= 1 x 4 + 2 x 2
= 4 + 4
= 8
Total score for Donna Inc
= 1 Excellent + 2 Fair
= 1x 4 + 2 x 2
= 4 + 4
= 8
For attribute “Sales”:
Total score for Kay Corp
= 1 Good + 1 Fair + 1 Poor
= 3 + 2 + 1
= 6
Total score for Donna Inc
= 2 x Fair + 1 Poor
=2 x 2 + 1 x 1
= 5
Thus,
Total weighted score for either of the companies
= Weightage on “Company” x Score for “Company” + Weightage on “Services” x Score for “Services” + Weightage on “Products” x score for Products + Weightage on “Sales” x Score on sales
= 0.2x Score for “Company” + 0.2 x Score for “Services” + 0.4 x score for Products + 0.2 x Score on sales
Therefore ,
Weighted score for Kay Corp = 0.2 x 17 + 0.2 x 9 + 0.4 x 8 + 0.2 x 6 = 3.4 + 1.8 + 3.2 + 1.2 = 9.6
Weighted score for Donna Inc = 0.2 x 12 + 0.2 x 8 + 0.4 x 8 + 0.2 x 5 = 2.4 + 1.6 + 3.2 + 1 = 8.2
Since Total Weighted score of Kay Crop > Total weighted score of Donna Inc, Kay Corp should be chosen as Vendor
YOU SHOULD CHOOSE VENDOR KAY CORP WITH A WEIGHTED SCORE OF 9.6
YOU SHOULD CHOOSE VENDOR KAY CORP WITH A WEIGHTED SCORE OF 9.6
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