The Johnson Cycle Company has completed a total cost analysis for two suppliers
ID: 448592 • Letter: T
Question
The Johnson Cycle Company has completed a total cost analysis for two suppliers of tires to support their business. They also consider delivery speed, consistent quality and volume flexibility in their selection process. Each criterion is given a weight (total = 100 points), and each supplier is scored on each criterion (1 = poor, 10 = excellent). The data are shown in the following table.
CRITERION
WEIGHT
Lincoln Tire
Tokyo Tire
Total Cost
20
5
6
Delivery Speed
30
6
5
Consistent Quality
25
8
6
Environmental Sensitivity
25
4
7
Using the preference matrix approach for selecting suppliers, which supplier should Johnson select?
CRITERION
WEIGHT
Lincoln Tire
Tokyo Tire
Total Cost
20
5
6
Delivery Speed
30
6
5
Consistent Quality
25
8
6
Environmental Sensitivity
25
4
7
Explanation / Answer
Lexington Tire's total weighted score=580
Tokyo Tire's total weighted score=595
Using the preference matrix approach for selecting suppliers, Tokyo Tire should be selected
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