4. You are in charge of analyzing five new suppliers of an important raw material and have been given the information shown below (1 = worst, 10 = best). Management has decided that criteria 2 and 3 are equally important and that criteria 1 and 4 are each four times as important as criterion 2. No more than two new suppliers are required but each new vendor must exceed a total score of 70 percent of the maximum total points to be considered. 1 RATING Vendor Vendor Vendor Vendor Performance criterion Quality of raw material Environmental impact Responsiveness to order changes |Cost of raw material Vendor A B. D. 7. 3 6 9. 3. 8. 4. 7 9. 7. 6. 6. 9. 2 7. a. Which new vendors do you recommend? b. Would your decision change if the criteria were considered equally important? 00 ma7

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
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4. You are in charge of analyzing five new suppliers of an important raw material and have been
given the information shown below (1 = worst, 10 = best). Management has decided that
criteria 2 and 3 are equally important and that criteria 1 and 4 are each four times as important
as criterion 2. No more than two new suppliers are required but each new vendor must exceed
a total score of 70 percent of the maximum total points to be considered.
RATING
Vendor
Vendor
Vendor
Vendor
Performance criterion
Vendor A
D
Quality of raw material
Environmental impact
Responsiveness to order changes
8
7
3
9.
3
8
4
7
7
5
7
6
Cost of raw material
7
7
a. Which new vendors do you recommend?
b. Would your decision change if the criteria were considered equally important?
5. Janice Gould of Krebs Consulting is in the process of making a recommendation to a client
regarding the corporate-wide purchase of an analytical software platform. She has made the
following estimates on management's most important performance criteria and has rated
three Software packages across these criteria.
RATING
Factor
Vendor Vendor Vendor
Performance criterion
Functionality
weight
A
B
25
9
8
Vendor reliability
10
7
5
9.
Compatibility with current systems
Maintenance & support
20
6
8
10
5
8
Total cost
25
8.
Speed of implementation
10
8
4
7
a. Which software platform would you recommend?
b. Assume that the client changes their mind and now argues that the maintenance and
support criterion is already accounted for by the total cost criterion. Further, the client asks
Ms. Gould to drop maintenance and support and add its factor weight to total cost. Will
this client request alter the recommendation?
Transcribed Image Text:4. You are in charge of analyzing five new suppliers of an important raw material and have been given the information shown below (1 = worst, 10 = best). Management has decided that criteria 2 and 3 are equally important and that criteria 1 and 4 are each four times as important as criterion 2. No more than two new suppliers are required but each new vendor must exceed a total score of 70 percent of the maximum total points to be considered. RATING Vendor Vendor Vendor Vendor Performance criterion Vendor A D Quality of raw material Environmental impact Responsiveness to order changes 8 7 3 9. 3 8 4 7 7 5 7 6 Cost of raw material 7 7 a. Which new vendors do you recommend? b. Would your decision change if the criteria were considered equally important? 5. Janice Gould of Krebs Consulting is in the process of making a recommendation to a client regarding the corporate-wide purchase of an analytical software platform. She has made the following estimates on management's most important performance criteria and has rated three Software packages across these criteria. RATING Factor Vendor Vendor Vendor Performance criterion Functionality weight A B 25 9 8 Vendor reliability 10 7 5 9. Compatibility with current systems Maintenance & support 20 6 8 10 5 8 Total cost 25 8. Speed of implementation 10 8 4 7 a. Which software platform would you recommend? b. Assume that the client changes their mind and now argues that the maintenance and support criterion is already accounted for by the total cost criterion. Further, the client asks Ms. Gould to drop maintenance and support and add its factor weight to total cost. Will this client request alter the recommendation?
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