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The Johnson Cycle Company has completed a total cost analysis for two suppliers

ID: 448592 • Letter: T

Question

The Johnson Cycle Company has completed a total cost analysis for two suppliers of tires to support their business. They also consider delivery speed, consistent quality and volume flexibility in their selection process. Each criterion is given a weight (total = 100 points), and each supplier is scored on each criterion (1 = poor, 10 = excellent). The data are shown in the following table.

CRITERION

WEIGHT

Lincoln Tire

Tokyo Tire

Total Cost

20

5

6

Delivery Speed

30

6

5

Consistent Quality

25

8

6

Environmental Sensitivity

25

4

7

Using the preference matrix approach for selecting suppliers, which supplier should Johnson select?

CRITERION

WEIGHT

Lincoln Tire

Tokyo Tire

Total Cost

20

5

6

Delivery Speed

30

6

5

Consistent Quality

25

8

6

Environmental Sensitivity

25

4

7

Explanation / Answer

Lexington Tire's total weighted score=580

Tokyo Tire's total weighted score=595

Using the preference matrix approach for selecting suppliers, Tokyo Tire should be selected

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