A company is about to select a vendor for its outsourcing activity. Five critical criteria, and their importance weights, are shown below. Three vendors are rated (Scores from 1 to 10 with a score of 10 the highest) and their scores are listed below. Use the factor-weighting approach to determine the choice of the vendor. Comment on the use of the factor-weighting approach in selecting the vendor in this situation. Weight Vendor 1 Vendor 2 Vendor 3 Customer service 0.11 9 7 3 Delivery speed Reliability Product quality Financial performance 0.22 6 7 9 0.20 3 4 9 0.32 8. 0.15 5 9. 4

A company is about to select a vendor for its outsourcing activity. Five critical criteria, and their importance weights, are shown below. Three vendors are rated (Scores from 1 to 10 with a score of 10 the highest) and their scores are listed below. Use the factor-weighting approach to determine the choice of the vendor. Comment on the use of the factor-weighting approach in selecting the vendor in this situation. Weight Vendor 1 Vendor 2 Vendor 3 Customer service 0.11 9 7 3 Delivery speed Reliability Product quality Financial performance 0.22 6 7 9 0.20 3 4 9 0.32 8. 0.15 5 9. 4

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

Problem 5.2SB

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Please turn in the Decision Table for the following scenario. A company has various rules for how payments to suppliers are to be authorized. Some payments are in response to an approved purchase order. For approved purchase orders under $5,000, the accounting clerk can immediately issue a check against that purchase order and sign the check. For approved purchase orders between $5,000 and $10,000, the accounting clerk can immediately issue a check but must additionally obtain a second signature. Payments for approved purchase orders over $10,000 always require the approval of the accounting manager to issue the check as well as the signature of two accounting clerks. Payments that are not covered by a purchase order that are under $5,000 must be approved by the accounting manager and a departmental manager that will absorb the cost of the payment into that department’s budget. Such checks can be signed by a single accounting clerk. Payments that are not covered by a purchase order…
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