Price Technologies, a California-based high-tech manufacturer, is considering ou
ID: 442497 • Letter: P
Question
Price Technologies, a California-based high-tech manufacturer, is considering outsourcing some of its electronics production. Three firms have responded to its request for bids, and CEO Willard Price has started to perform an analysis on the scores his SCM team has entered in the table below.
Criterion
Weight
Supplier 1 (rating)
Supplier 2 (rating)
Supplier 3 (Rating)
Labor
0.3
90
90
100
Logistics system
0.3
70
90
60
Service
0.2
80
70
90
Management
0.2
100
90
70
The outsourcing provider scores are on a scale of 0 through 100, with 100 being the most satisfactory.
Which supplier should Mr. Price choose? Please provide the overall ratings of each supplier for full credit. For each overall rating, please provide at least one step of calculation.
Criterion
Weight
Supplier 1 (rating)
Supplier 2 (rating)
Supplier 3 (Rating)
Labor
0.3
90
90
100
Logistics system
0.3
70
90
60
Service
0.2
80
70
90
Management
0.2
100
90
70
Explanation / Answer
in this case the supplier 2 will be appropriate. Mr. P can select supplier 1 for the purpose of out sourcing. the rating which can be given to the supplier 2 is 90 out of 100.
As per this supplier the service is 80% and the managenent is 100% which is the basis for the success in the current business environment.
for supplier 2, 60% rating can be given.. this is because the service level is only 70%. finally for supplier 3 50% rating can be given. here the servie is 90% but the management is only 70% and the logistic system is only 60% which can hinder the supply of the products.
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