supplier selection
Question Description
Problem 2: Supplier Selection
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.
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.
C) Which supplier should be selected based on these criteria?
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