omework: Chapter 2 Suggested Homework core:0 of 1 pt 12 of 15 (13 complete) Hw S
ID: 394915 • Letter: O
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omework: Chapter 2 Suggested Homework core:0 of 1 pt 12 of 15 (13 complete) Hw Score: 86.67%, 13 of 15 roblem 2.9 Question Help Ranga Ramasesh is the operations manager for a firm that is trying to decide which one of four countries it should research for possible outsourcing providers. The first step is to select a country based on cultural risk factors, which are critical to eventual business success with the provider. Ranga has reviewed outsourcing provider directories and found that the four countries in the table below have an ample number of providers from which they can choose. To aid in the country selection step, he has enlisted the aid of a cultural expert, John Wang, who has provided ratings of the various eriteria in the table below The resulting ratings are on a 1 to 10 scale, where 1 is a low risk and 10 is a high risk. Further, John Wang has determined six criteria weightings. Trust, with a weight of 0.40; Quality, with 0.20; Religious, with0.10; Individualism, with 0.10; Time, with 0.10; and Uncertainty, with 0.10. Using the weighted factor-rating method, which country should Ranga select? In the following table, compute the total weighted score for each candidate (enter each response as a decimal rounded to one place) Weight Mexico Panama Costa Rica Peru Selection Criterion Trust Society value of quality work Religious attitudes Individualism attitudes Time orientation attitudes 0.40 0.20 0.10 0.10 0.10 avoidance attAude Total Weighted SconeExplanation / Answer
The total weighted score for a location is calculated by multiplying the factor weights with the respective location score and then adding them to compare.
Composite score = summation of (factor weights X location score)
Therefore,
Total weighted score for Mexico = (0.40X3)+(0.20X6)+(0.10X3)+(0.10X2)+(.10X4)+(.10X3)
= 1.2+1.2+0.3+0.2+0.4+0.3
=3.6
Total weighted score for Panama = (0.40X3)+(0.20X4)+(0.10X3)+(0.10X2)+(0.10X6)+(0.10X2)
= 1.2+0.8+0.3+0.2+0.6+0.2
=3.3
Total weighted score for Costa Rica = (0.40X4)+(0.20X8)+(0.10X3)+(0.10X1)+(0.10X7) +(0.10X4)
= 1.6+1.6+0.3+0.1+0.7+0.4
= 4.7
Total weighted score for Peru = (0.40x2)+(0.20x8)+(0.10x5)+(0.10x1)+(0.10x3)+(0.10x2)
= 0.8 + 1.6 + 0.5 + 0.1 + 0.3 + 0.2
= 3.5
The location with highest Total weighted score is the preffered location.Therefore,Ranga should select Costa Rica as it has the highest Total weighted score among all the four locations
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