Claudia Pragram Technologies, Inc., has narrowed its choice of outsourcing provi

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

Total Weighted score of England = 0.1*1 + 0.6*4 + 0.2*3 + 0.1*4 = 3.5

Total Weighted score of Canada = 0.1*4 + 0.6*4 + 0.2*2 + 0.1*1 = 3.3

As Canada has a lower overall risk score. so I will seelct Canda as an option

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