Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A potato chip manufacturer is looking for a potato supplier that will enter a two-year agreement to provide potatoes for the new line of chips

A potato chip manufacturer is looking for a potato supplier that will enter a two-year agreement to provide potatoes for the new line of chips the manufacturer is developing. The factors on which the suppliers will be evaluated are quality, price, lead time, and delivery frequency. The following table provides weights assigned to the factors by the company.

Factor Weight
Quality 0.2
Price 0.2
Lead time 0.3
Delivery frequency 0.3

The company has narrowed down the search to three suppliers (Farm A, Farm B, Farm C). The manufacturer has researched the suppliers and assigned ratings to each supplier with respect to each factor. The following table summarizes the ratings (on a 110 scale):

Farm A Farm B Farm C
Quality 6 8 6
Price 9 4 6
Lead time 7 7 3
Delivery frequency 9 8 8

Using the factor-weighting technique in supplier analysis, evaluate the suppliers and find the supplier with the best performance with respect to all three factors.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Today

Authors: Terri A. Scandura, Kim Gower

1st Edition

ISBN: 1506385877, 978-1506385877

More Books

Students also viewed these General Management questions