Asked by Tiffany Smith on May 20, 2024
Verified
An industrial producer is searching for a supplier for ball bearings. Its three most important supplier criteria are price, quality, and delivery reliability. The firm has decided that quality and delivery reliability should carry the same weight, and that each of them are twice as important as price. If the weights sum to 100%, what would a supplier with ratings of 40, 90, and 75 in the three respective categories score as a weighted total?
A) 37
B) 370
C) 49
D) 205
E) 74
Supplier Criteria
Conditions or standards used by a company to evaluate and select suppliers based on factors like quality, delivery, price, and service.
Weighted Total
A method to calculate an overall score by applying different weights to various components according to their importance.
- Utilize the factor weighting approach for supplier selection based on numerous factors.
Verified Answer
CD
Corey DuncanMay 21, 2024
Final Answer :
E
Explanation :
Given that quality and delivery reliability are twice as important as price and they carry the same weight, we can assign the weights as follows: Price = x, Quality = 2x, Delivery Reliability = 2x. Since the weights sum to 100%, we have x + 2x + 2x = 100% => 5x = 100% => x = 20%. Therefore, the weights are: Price = 20%, Quality = 40%, Delivery Reliability = 40%. The weighted total score = (0.20 * 40) + (0.40 * 90) + (0.40 * 75) = 8 + 36 + 30 = 74.
Learning Objectives
- Utilize the factor weighting approach for supplier selection based on numerous factors.