1. Buyer A wishes to rate its vendors on quality, service, and price. Their weight factor is given. In this problem, quality is rated as a direct percentage of the number of acceptable lots received in relation to total lots received. The service rating is a direct percentage of the lots delivered on time in relation to total lots received. In rating price, the lowest price obtained from any supplier is used as the base price, and prices from other suppliers are rated as a ratio of this figure. Supplier 1 Supplier 2 Quality (weight = 40) Acceptable lots 60 43 Total lots received 85 50 Quality Rating (%) Service (weight = 35) On-time deliveries 56 49 Total lots received 68 56 Service Rating (%) $75 $80 $75 $82 Price (weight = 25) Lowest Price Price submitted Price Rating (%) Total (Weighted) Performance Score Questions: A. Find the ratings for Quality, Service and Price for both the suppliers. (5) B. Find the total weighted performance score for the Supplier 1 & 2. (12) C. Which supplier would be the most satisfactory supplier and provide the reason to support your recommendation? (3) 1 2. Cost-based System and Supplier Performance Index Supplier Performance Report ending December 2019 Supplier: ABC Company Commodity: Integrated circuits for cloth dryer A. 150 units were purchased @$69.85 per unit Nonperformance costs Event Number of Average costs occurrences per occurrence Scrap labor cost 15 $ 45 Return to supplier 12 $ 22 Late delivery 17 $ 42 Testing and re-storage 11 $ 24 Compute the Supplier Performance Index (SPI) for this supplier. (20) 3. Describe barriers to worldwide sourcing (10) = 4. Describe possible risks of maintaining fewer suppliers. (5) 5. Describe a comparison of Supplier Measurement and Evaluation systems in a tabular form. (10) 2 6. You, as a supply chain manager, are considering the purchase of 100 desktop PCs for your company. The life cycle for the PCs is three years, and your company's cost of capital is 8%. You are required to calculate the TCO for this scenario and the following cost elements are available to you. (50) Cost elements Cost measures Purchase Price Hardware Equipment Supplier quote: $800 per PC Software License $400 per PC Acquisition Cost: Sourcing 2 FTE @ $80,000 and $100,000 for 2 months Administration 1 Purchase order @ $120, 12 invoices @ $50 each The purchase order is placed now and invoices are placed every month. Usage Costs: Installation $500 per PC Equipment support $100 per month per PC Warranty $150 per PC (paid at the time of purchase) Opportunity cost - Lost Productivity Downtime 10 hours per PC @$20 per hour End of Life: Salvage Value $50 per PC You are required to compute the above cost-elements, their total and present values and place them in the following table: Cost Elements Present Year 1 Year 2 Year 3 Name them here Total 3 II Present Value: Total Present Value