Fernando Garza’s firm wishes to use factor rating to help select an outsourcing provider of logistics services.

a) With weights from 1–5 (5 highest) and ratings 1–100 (100 highest), use the following table to help Garza make his decision:

RATING OF LOGISTICS PROVIDERS CRITERION WEIGHT OVERNIGHT SHIPPING WORLDWIDE DELIVERY UNITED FREIGHT Quality 5 90 80 75 Delivery 3 70 85 70 Cost 2 70 80 95

b) Garza decides to increase the weights for quality, delivery, and cost to 10, 6, and 4, respectively. How does this change your conclusions? Why?

c) If Overnight Shipping’s ratings for each of the factors increase by 10%, what are the new results? lop1