Answer Multiple chioce question using information from the case study. A thunbs up will be given once the question below is answered. Thank You

Currently the pricing criterion accounts for 35 percent. Since achieving a lower total cost of Hansen purchases is a key goal for the WMP, the weight assigned to pricing could be increased past 40 percent. If this were done, which company would achieve the highest total score?

A. Bobcock

B. PCC

C. No change

D. Western

Bid Assessment On August 4, Kanty Saxton, Hansen Equipment's newly hired buyer, was preparing for a meeting with Scott Carpenter, purchasing managbr, the following day. Kathy had received four bids for Hansen Equipment's cabie and wire bushess and was wondering it the bid evaluation criteria she had developed earlier were still appropriate and what action to recommend. page 368 BIDDING PROCESS Given her lemined experience at Hansen Eeuipment (Hunsen), Kathy decided that going cut for bids would be the best approach. She was not personaly tamiliar with any of the company's wire and cabie suppliers. The request for quotation (iFO) package that Kathy distributed containod a list of wire and cable peoducts purchased by Hansen in the most recent 12 -mionth period and a forecast for the coming year. Suppliers were asked to provide dotals on pricing, payment terms, delivery methed, and current inventory position on products used by Hansen. She neted in the AFQ package that pricing and ablity to accommodate Hansens tequirements were important considerations, as were retum policies. Suppliers were also asked to include any innovative ideas on how to improve service to Hansen. Ten potential electricat suppliers had been asked to bid for Hansen's annual wire and cable requirements. Suppliers imited to participate in the wire management program [WMP) were chosen based on Kattyrs contidence in their ability to euote all of Hansen's requirements for wire and cable and to provide goed service. Al of the potential suppliers were local. Completed bids were submitted to Hansen from the four suppliers. Although Kathy believed the other six companies were capable, most claimed than they could not tatisfy all of Hanien's requirements. However, Kathy believed the four bidt received stal provided a competitive bid environment. Some suppliers had asked abeut the possiblity of supplying aiternative products with neariy identical features, especiatly as a subutitute to Hanien's reguest for Newtiex cable. Due to licensing agreements, only Piper Cable Corporation (PCC), Babceck Electric, and WeMern Electric could supply Newfiex. Some suppliers, swch as Provincial Electric, could supply Kelvir' cable as an ahternative to Newflex, Mamy large custamers purchased Kelvin cable in place of Newllex, claiming Kelvin to be more effective in certain applications. The Mansen bid wse ineluded a list of obselete stock currently held in Hansen's warehouse. Due to changes in custamer speeifications, Hansen's warehouse centained same wire and cable stock that could not be used for future projects. The stock stil had resaie value, and scott wanted the companies bidding to supply wire and cable to subinit a bupback value as part of their quotes. Kathy estimated the value of the inventory to be $10.000. From her dhcusions with Hansent receiving managet, Wesley Wen, with regard to the performance records kept for iso 9001 purposes, Kathy had cempleted an analyis and conparison of the suppliers (See Exhiba 1). She also developed criteria with which to evaluate each supplier using weights assigned to each eriterion isee Eahibit 2). Lastly, she took the total value of each bid, stparated it ime wire and eable respectively, and created a bid summary to peovide an analysis of the pricing from each supplier (See Euhbit 3). SUPPLIER BIDS The following provides descriptions of the four electrical suppliers that submitted completed bids to Hansen for the WMP. Piper Cable Corporation (PCC) PCC was a small electrical supplier that specidized in cable and cable accessories, It had been servicing the automothe and rabotics industries for nine years, PCC had a reputation for providing good service. It had a five-year relationstip with Hansen and was curtently supplying Hansen with all of its Newlex cable requirements. PCC wanted to continue to supply Hansen with Newilex cable in the future. Howeve, it was worried about bidding against larger suppliers on commodity wire products, since it did not possess the economies of scale of its larger competitors. The president of PCC commented that "it is hard to do both high-end cable and commodity wire products together. PCC did not have miveh interest in purchasing Hansen's obsolete wire and cable inventory. Delivery trom PCC's facility was made through a courier, with lead times of three to four days. PCC could provide 24 -hour service it necessary, but at an extra cost. Mary Newfler cables were held in slock at PCC. Nonstocked cables could be couriered ovemight from the Newtlex manufacturing plant in New Jersey. since many of Hansen's requirements were urgent, it was reassuring to have PCC as a supplier. pCC's sales regresentative provided great secvice and returned all ealls promptly, aceerding to comments trom some Hanten bugers. Kathy believed that PCC was wery chsponsive and interested in pleasing its customers. For example, the president and sales repeesentative could be reached on their cell phones atter regular business hours, including weekends, in case of customer emergeneies. Another Hansen boyer had told Kathy that PCC's delivery lesd times were fair for non-rush hems. One of PCC's cwstomers that Kathy had spoken with described the compary as "Service-ariented ... cost issues come later. They're wiling to wook with pricing ... quality is never an issue." Western Electric Western Electric (Western) was a well-established electrical distributor localed about 30 miles away. It was a large organization that wanted to seoure all of Hansen's electrical business. Western's top priority was product avalabilify, which it was able to achieve through its size and dealer network. Western's pricing was competitive, and its monagenent tears was professional and friendly. However, it was sometimes ditficull to get a hold of the Western's sales representative. Aesponse time to requests had occaslonally been slow in the past. On average, lead times were fwo to three days. Hansen could receive up to thee deliweries from Western each day, since it operated its own fleet ot delivery trucks. Kathy was concerned that westerns size could impede its ability to process rust orders. Kathy visited Western's central wire warehouse and was impressed by the amount of products it held in stock, including Newfler cable. Western had not been a major wire and cable supplier in the past, although in supplied many other electrical components. Babcock Electric Babcock Electric (Babcock) was a wery large wire and cable suppier that began operations in the eurly 1950 . It had not done ary recent business with Hansen, for which Kathy could not find any specific reason. Therefore, Hansen's Wesley Wen had no recorda ot Babcock's performance. Order fulfilment was pertormed through the use of courier delivery services. Some of Babcock's hey customers were very large and used large quantities of wire and cable The sales tepresentative was friendly but gave a lot of general answers to Kathy's questions. He seemed interested in obtaining Hansen's business but was unfamilar with basic irventory eoncepts, which surprised Kathy. Kathy got the inilial impression that Hansen would not be the Babcock representative's most valued customer. By chance, Kathy met and spoke with a former employee of Babcock a tew dwys later, who described the organization as being "Too big. ... not fast ... nverything needs to be documented and this can cabise problems with rush deliveries. However, in prides isself on produet avalabiliny and competitive pricing:" Provincial Electric Provincial Electric (Provincial) was a smalf electrical supply company that had been dealing with Hansen for eight years. its founder and its sales representative had both originally been employed at Western but had tesigned t1 years ago to start Provineial. Provineial was eurrently supplying Hansen with most of its wire requirements. Provincial's primary focus was service. Delivery times were excellent, usually same day or next doy for stock inems, according to Wesley Wen. Otherwise, deivery would usually take two to three days. Its sales representative was always avalable to answer questions and to provide advice, and he personally visited Hansen every few days. Kattyy obierved that his prerence was well appreciated by Hansen's engineers and employees, and everyone seemed to like him. Of the four bidding supplers, Provincial could not supply Newflex cable. insuead, it wanted to supply Hansen with Kelvin cable, which was more expensive but supposedly equaliy effective. Some concern arose regarding this replacement cable, since it had not been fully tested by Hansen. Provincial held two "lunch and leam" seminars at Hanten in order to educate the engineers and buyers about the Keivin and its protucts, which gave the engineers an opportunity to inspect the products and ask technical ouestions. Another potential difficulty with Kelvin cable was that Hansen recelved several orders each year that specified Newfler cable. If Hansen wanted to substitute Kelvin products, it would need custemer approvel. However. Hansen would first have to test Kewin cables. To help conince Hansen to test the Kelvin cables, representatives from Provinsial and Ketvin agreed to supely peoducts free of charge for the trial. This offer was signiticant considering that the cable for an average-Hansen project cost between $15,000 and $25,000. SELECTION CRITERIA fletore sending out the AFQs, Kathy identilied a set of evaluation criteria and weights. Now that she had received the bids Kathy wondered it the criteria and weights should be revised. Ehe had a meeting with scott the next day, and he would be expecting a recommendation regarding supply tor cables and wires, supported wath a thorough analyas of the aleernativei