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

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.

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 Consisten Quality 25 8 6 Environmental Sensittivity 25 4 7

Explanation / Answer

Licoln Tire Score=(20*5+30*6+25*8+25*4)/100=5.8

Tokyo Tire=(20*6+30*5+25*6+25*7)/100=5.95

hence tokyo tire should be selected

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