An electronics company is planning to outsource the production of the semiconductor chips needed for its products. The company has decided to adopt a multi-sourcing strategy to ensure it has alternative supply sources should the primary supplier fail to meet its contractual obligations. Accordingly, the company wants to classify its suppliers as potential, approved, and preferred suppliers by using a weighted-factor rating model. The company is planning to use the following schema to classify the suppliers based on their total weighted scores:

Potential suppliers: 55 to 65; Approved suppliers: 66 to 79; Preferred suppliers: >80.

The company has already identified three firms from China, Vietnam, and Singapore as possible suppliers. In addition, the team has identified the critical supplier criteria/factors and factor weights (0 to 1) to reflect their relative importance. The team has also developed scores (1 to 100) to rate the three suppliers on these criteria. The factors, their weights, and the scores for the three suppliers are shown in the following table. Categorize each supplier as potential, approved, or preferred.

Transcribed Image Text:

Score Critical Factors Weight China Vietnam Singapore Delivery Reliability 0.2 60 85 Purchase Price 0.1 70 80 50 Quality Performance 0.3 60 60 80 Technological Capabilities 0.3 70 60 90 Sustainability Compliance and Ethical Behavior 0.1 60 80 Total 1.0