Problem 2: Supplier Selection (10 points) Your sourcing department has received
ID: 445343 • Letter: P
Question
Problem 2: Supplier Selection (10 points)
Your sourcing department has received bids from three suppliers shown below.
PERFORMANCE DIMENSION
IMPORTANCE
Supplier 1
Supplier 2
Supplier 3
On Time Delivery (% on time)
0.50
97%
94%
88%
Excess Capacity (square feet of excess space)
0.40
11k sq. ft.
45k sq. ft.
80k sq. ft.
Cost ($/unit)
0.10
$3.50/unit
$3.75/unit
$2.55/unit
A) Score each supplier‘s bid using the following scale. (4 points)
On Time Delivery
Excess Capacity
Cost
Range
Score
Range
Score
Range
Score
<90%
1
<25k square feet
1
>$2.99 per unit
1
91%-93%
2
26k-35k square feet
2
$2.50-$2.98 per unit
2
94%-96%
3
36k-75k square feet
3
$2.25-$2.49 per unit
3
97%-98%
4
76k-125k square feet
4
$2.10-2.24 per unit
4
99%+
5
126k+ square feet
5
<$2.10 per unit
5
B) Calculate the weighted average score for each supplier. (4 points)
C )Which supplier should be selected based on these criteria? (2 points
PERFORMANCE DIMENSION
IMPORTANCE
Supplier 1
Supplier 2
Supplier 3
On Time Delivery (% on time)
0.50
97%
94%
88%
Excess Capacity (square feet of excess space)
0.40
11k sq. ft.
45k sq. ft.
80k sq. ft.
Cost ($/unit)
0.10
$3.50/unit
$3.75/unit
$2.55/unit
Explanation / Answer
(a)
(b)
(c)
Supplier 2 should be selected based on these criteria. It has high weighted score.
Importance Supplier 1 Supplier 2 Supplier 3 0.5 4 3 1 0.4 1 3 4 0.1 1 1 2Related Questions
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