roblem 13 been gven the information shown below (1-worst 10 best) Management has
ID: 386614 • Letter: R
Question
roblem 13 been gven the information shown below (1-worst 10 best) Management has decided that cniteria 2 and 3 are equally important and that crteia 1 and 4 are each ftour times as important as citerion 2 Assume that the sum of the weights equals 100 No more than 2 new vendors are required but each new vendor must exceed a total score df macomumm total points to be considered You are in change of analyzing five new vendors of an important raw material and have 70 peecent of the Rating Vendor A wrder B wndo' wndor D Vendor E Performance Criterion Quality of eaw material Enmironmental impac Responsiveness to order changes Cost of raw material a. Which new vendors do you recommend? Calculate the total weighted score for all of the vendors and sl in the table below (enter your responses as whole numbers Total Weighted Vendor Enter your ansæer in the edt telds and then cick Check AnswerExplanation / Answer
13) Solution:
Let the respective weight of each of the criteria be given as,
Criteria 1 = w1
Criteria 2 = w2
Criteria 3 = w3
Criteria 4 = w4
Given, w2 = w3 and w1 = w4 = 4 x w2
w1 + w2 + w3 + w4 = 100
The above equation can be solved for w2 as,
(4 x w2) + w2 + w2 + (4 x w2) = 100
(10 x w2) = 100
w2 = 10
w3 = 10
w1 = 40
w4 = 40
Total weighted score for each vendor is calculated as below:
Vendor A = (40 x 5) + (10 x 3) + (10 x 9) + (40 x 7) = 600
Vendor B = (40 x 9) + (10 x 5) + (10 x 5) + (40 x 8) = 780
Vendor C = (40 x 3) + (10 x 7) + (10 x 8) + (40 x 9) = 630
Vendor D = (40 x 4) + (10 x 7) + (10 x 5) + (40 x 2) = 360
Vendor E = (40 x 9) + (10 x 7) + (10 x 5) + (40 x 7) = 760
Maximum total points to be considered is calculated as,
Maximum total points = (40 x 10) + (10 x 10) + (10 x 10) + (40 x 10)
That is, if a vendor scores best score (10) on each given criteria.
Maximum total points = 1000
Eligibility criteria = 70% of maximum total points = 70% of 1000
Eligibility criteria = 700 points
On the basis of the total weighted score, only vendors B and E have a total weighted score of more than 700 points.
Hence, Vendor B and Vendor E should be selected.
14) Solution:
The total weighted score of location A and location B is calculated as below:
Location A = (10 x 1) + (10 x 5) + (20 x 3) + (20 x 9) + (20 x 9) + (20 x 7) = 620
Location B = (10 x 3) + (10 x 4) + (20 x 3) + (20 x 3) + (20 x 2) + (20 x 5) = 330
On the basis of the total weighted score, Location A should be selected.
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