The Bennet Company purchase one of its
essential raw materials from three suppliers. Bennet’s current policy is to
distribute purchase equally among the three. The owner’s son, Benjamin Bennet,
just graduated from a business college. He proposes that these three suppliers
be rated (high numbers mean a good performance) on six performance criteria
weighted as shown below. A total scored hurdle of 0.60 is proposed to screen
suppliers. Purchasing policy would be revised to order raw materials from suppliers
with performance scores greater than the total score hurdle, in proportion to
their performance rating score.
A.
What supplier’s survived the
hurdle?
B.
Under the younger Bennet’s
proposed policy, what proportion of orders would each supplier receive?
C.
What advantages does the
proposed policy have over the current policy?
|
Rating |
||||
|
Performance Criterion |
Weight |
Supplier A |
Supplier B |
Supplier C |
|
Price |
0.2 |
0.6 |
0.5 |
0.9 |
|
Quality |
0.2 |
0.6 |
0.4 |
0.8 |
|
Delivery |
0.3 |
0.6 |
0.3 |
0.8 |
|
Production Facilities |
0.1 |
0.5 |
0.9 |
0.6 |
|
Environmental |
0.1 |
0.7 |
0.8 |
0.6 |
|
Financial Position |
0.1 |
0.9 |
0.9 |
0.7 |
|
1 |
||||
|
Weighted Total |
0.63 |
0.53 |
0.77 |
|
|
Weighted Average |
0.63 |
0.53 |
0.77 |
Question 4
Beagle Clothiers uses a
weighted score for evaluation and selection of its suppliers of trendy
fashion garments.
Each supplier is rated on a 10-point scale (10 –
higherst) for four different criteria: price,
quality, delivery, and flexibility (to accommodate changes in quantity &
timing). Because of volitility of
the business in which Beagle operates, flexibility is given twice the weight of
each of the other three criteria,
which are equally weighted. The table shows the scores for three potential suppliers for
the four performance criteria. Based on the highest weighted
score, which supplier should be selected?
Criteria Supplier Supplier Supplier
A B C
Price 8 6 6
Quality 9 7 7
Delivery 7 9 6
Flexibility 5 8 9
Question 5
ingman distributing company is
expanding its supply chain to include a new distribution hub in south bend. A
key decision involves the number of trucks for the facility. The particular
model of truck wingman is considering can be used 8,000 miles a month and will
cost $1,500 a month in capital costs. In addition, each mile a truck is used
costs $0.90 for maintenance. A local truck rental firm will rent trucks at a
cost of $0.90 per mile, which includes the maintenance costs for those miles.
Given the distribution of likely requirements for trucks, management has come
up with three alternatives to consider as shown in the table.
Monthly requirements (miles) 40,000 80,000 1 20,000
Probability 0.30 0.40 0.30
Fleet size (trucks) 5 1 0 1 5
Which fleet size will yield the lowest expected
monthly costs for Wingman?
