A company is deciding between 2 foreign firms to provide its call center service
ID: 464383 • Letter: A
Question
A company is deciding between 2 foreign firms to provide its call center services. A factor-rating method is used. Factors are rated on a scale of 1-10, with 1 being the best score.
Firm
Factor 1
Factor 2
Factor 3
A
8
7
5
B
4
8
7
A: If the factors are weighted equally (respective weights of .333), what is the factor-rating score for each firm and which firm is preferred
b:Suppose a consultant recommended that Factor 2 be three times as important as Factor 1, while Factor 3 should be four times as important as Factor 1. Using the weighted method, what is the factor-rating scorer for each firm and which firm is preferred? (Round your weights to the third decimal place.)
Please show work. Thank you.
Firm
Factor 1
Factor 2
Factor 3
A
8
7
5
B
4
8
7
Explanation / Answer
a. if all the factors carries equal rating then the factor rating score
firm A= 0.333*8+0.333*7+0.333*5= 2.64+2.31+1.65= 6.6
firm B= 0.33*4+0.33*8+0.33*7= 1.32+2.64+2.31= 6.27
under this method firm A will be preferred.
b. factor 3 is given weight of 4 times than factor 1, factor 2 carries 3 times weight than factor 1, then the weights are
1:3:4 to each factor 1, 2 and 3.
firm A= 1/8*8+3/8*7+4/8*5= 1+2.625+2.5= 6.125
firm B= 1/8*4+3/8*8+4/8*7= 0.5+ 3+3.5= 7
under this method firm B will be preferred.
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