Question
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.
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