DeHoratius Electronics, Inc., is evaluating several options for sourcing a critical processor for its new modem. Three sources are being considered: Hi-Tech in Canada, Zia in Hong Kong, and Zaragoza in Spain. The owner, Nicole DeHoratius, has determined that only three criteria are critical. She has rated each firm on a 1–5 scale (with 5 being highest) and has also placed an importance weight on each of the factors, as shown below:

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OUTSOURCE PROVIDERS FACTOR (CRITERION) IMPORTANCE WEIGHT HI-TECH ZIA (CANADA) (HONG KONG) Rating Wtd. Score Rating Wtd.score Rating ZARAGOZA (SPAIN) Wtd. Score 1. Cost .5 3 1.5 3 1.5 5 2.5 2. Reliability .2 4 st .8 3 .6 3 .6 3. Competence 3 5 1.5 4 1.2 3 9 Totals 1.0 3.8 3.3 4.0