Solved Problem 2

  1. Eagle Electric Repair wants to select a supplier based on total annual cost, consistent quality, and delivery speed. The following table shows the weights management assigned to each criterion (total of 100 points) and the scores assigned to each supplier (Excellent=5, Poor=1 ).

    Scores

    Criterion

    Weight

    Kramer

    Sunrise

    Total annual cost

    30

    4

    5

    Consistent quality

    40

    3

    4

    Delivery speed

    30

    5

    3

    Which supplier should Eagle select given these criteria and scores?

Solution

  1. Using the preference matrix approach, the weighted scores for each supplier are:

    Kramer: WS=(30×4)+(40×3)+(30×5)=390  Sunrise: WS=(30×5)+(40×4)+(30×3)=400

    Based on the weighted scores, Eagle should select Sunrise even though delivery speed ...

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