Claudia Pragram Technologies, Inc., has narrowed its choice of outsourcing provi
ID: 408462 • Letter: C
Question
Claudia Pragram Technologies, Inc., has narrowed its choice of outsourcing provider to two firms located in different countries. Pragram wants to decide which one of the two countries is the better choice, based on risk-avoidance criteria. She has polled her executives and established four criteria. The resulting ratings for the two countries are presented in the table below, where 1 is a lower risk and 4 is a higher risk. Assume that the executives have determined four criteria weightings: Price, with a weight of 0.1; Nearness, with 0.6; Technology, with 0.2; and History, with 0.1. Using the weighted factor-rating method, which country would you select? In the following table, compute the total weighted score for each candidate (enter your responses rounded to one decimal place).Explanation / Answer
Score
Score
Weighted Score(Score*weight)
Weighted Scores(Score*weight
Factor
Weight
England
Canada
England
Canada
Price of services from outsourcing
0.10
1
2
0.1
0.01
Nearness of facilities to client
0.60
1
4
0.60
0.36
Level of technology
0.20
2
2
0.4
0.08
History of successful outsourcing
0.10
2
1
0.2
0.02
TOTAL=1.3 TOTAL=0.56
(a) After using weighted factor method, it is best to select England as it is having highest score
(b) Total weighted scores of England is 1..3
Total weighted scores Canada is 0.56
Score
Score
Weighted Score(Score*weight)
Weighted Scores(Score*weight
Factor
Weight
England
Canada
England
Canada
Price of services from outsourcing
0.10
1
2
0.1
0.01
Nearness of facilities to client
0.60
1
4
0.60
0.36
Level of technology
0.20
2
2
0.4
0.08
History of successful outsourcing
0.10
2
1
0.2
0.02
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