Operations Management: Processes and Supply Chains, 12th Edition

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 $\left(\text{Excellent}=5,\text{ Poor}=1\right).$

   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:

   $$\begin{array}{l}Kramer:WS=\left(30\times 4\right)+\left(40\times 3\right)+\left(30\times 5\right)=390\\ Sunrise:WS=\left(30\times 5\right)+\left(40\times 4\right)+\left(30\times 3\right)=400\end{array}$$

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