Bejeweled Manufacturing Company is evaluating two suppliers for a component sour

Question

Bejeweled Manufacturing Company is evaluating two suppliers for a component sourcing. After much internal discussion, BMC’s management has determined that the critical factors in choosing suppliers are quality, delivery, price, and service. Further, management has rated the importance of these factors as 0.4, 0.3, 0.2, and 0.1, respectively. On a scale of 1 to 5, Supplier A is rated at 5, 3, 3, and 3, respectively. Supplier B’s ratings are 4, 4, 3, and 4. Which supplier has the better weighted score?

Explanation / Answer

Solution :

The weighted score for both supplier is 3.8

Critical Factors Weight Supplier 1 Supplier 2 Quality 0.4 5 4 Delivery 0.3 3 4 Price 0.2 3 3 Service 0.1 3 4 Total Score 3.8 3.8

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