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Table identifying reasons for sole sourcing and multi-sourcing for critical items..
Chris Bell, your manager wants you to pick the best supplier to source a key strategic component for your factory. This component is used in a special luminaire for the company's best-selling product. Category LAS Con Inc LED Delivery - On-time percentage 94% 98% 99% Order Cycle Time 2 weeks 3 week 2 days Price $128.50 $141.50 $155.00 Quality (ppm) 15,000 10,000 1,000 1. Create a weighted-point evaluation tool that includes the four categories given but include a category called 'Financial Health'. 2. Assign weights to each category. Ensure that all five weights are not equal and they must sum to 1.0. Price must have a weighting of at least 0.5. 3. Develop a scoring methodology (1-5) for each of the five categories. Make sure that each category is clearly defined and that it will ensure differentiation and allow fair comparison between suppliers. Use the table supplied. 4. Based on your scoring, score each supplier in each category and record the results into the scoring table provided. s. Include the 'Financial Health' as a category and include it into the evaluation table (i.e. the fifth category. Details on the financial health of each company are detailed below. Financial ratio results: LAS Con Inc. LED 1.02:1 0.8:1 1.12:1 45 59 Ratio Current Ratio Average collection period (Days) Average Days in Inventory (Days) Net Profit Margin Debt to Equity ratio Return on Equity 15 20 10 6% 8% 3:1 12% 5% 2.5:1 10% 2:1 15% All ratio types are equally important in their importance. 1. Evaluate each ratio type using the methodology described in class. 2. Ensure you develop a scoring methodology (1-5) for the Financial Health category. Use the table provided. 6. Make a supported recommendation on which Supplier to choose. 7. Under which situations would you want to multi-source a critical item versus sole -source a critical item, using the table format (Give at least 2 supported reasons for each)? Special Topic: Supplier Evaluation 100DOR Price Delivery. On time percentage Order Cole Time Opp Ranking Table: LASIC LED Current Rulle Average collection periode Average Duya intentary Day Det qui Rebumen TOTAL La Description Score Supplier info TAM LAS Colar Wrighting and lotul scurd Total Sun Tua Delivery.On ne percentage Orderysteme duty top Francia em TOTAL SCORE Recommendation: Table identifying reasons for Sale sourcing and multi-sourcing for critical items: Sole Sur Mer Reference List Special Topic: Supplier Evaluation Scoring Tables Score:- 1 2 3 4 5 Price Delivery - On-time percentage Order Cycle Time Quality (ppm) Financial Health Ranking Table: Ratio LAS Con Inc. LED Current Ratio Average collection period (Days) Average Days in Inventory (Days) Net Profit Margin Debt to Equity ratio Return on Equity TOTAL Legend: Description Score Supplier Evaluation Table LAS Con Inc. LED Weighting Score Total Score Total Score Total Price Delivery - On-time percentage Order Cycle Time Quality (ppm) Financial Health TOTAL SCORE: Recommendation: Table identifying reasons for Sole sourcing and multi- Sole Source Multi-Source Chris Bell, your manager wants you to pick the best supplier to source a key strategic component for your factory. This component is used in a special luminaire for the company's best-selling product. Category LAS Con Inc LED Delivery - On-time percentage 94% 98% 99% Order Cycle Time 2 weeks 3 week 2 days Price $128.50 $141.50 $155.00 Quality (ppm) 15,000 10,000 1,000 1. Create a weighted-point evaluation tool that includes the four categories given but include a category called 'Financial Health'. 2. Assign weights to each category. Ensure that all five weights are not equal and they must sum to 1.0. Price must have a weighting of at least 0.5. 3. Develop a scoring methodology (1-5) for each of the five categories. Make sure that each category is clearly defined and that it will ensure differentiation and allow fair comparison between suppliers. Use the table supplied. 4. Based on your scoring, score each supplier in each category and record the results into the scoring table provided. s. Include the 'Financial Health' as a category and include it into the evaluation table (i.e. the fifth category. Details on the financial health of each company are detailed below. Financial ratio results: LAS Con Inc. LED 1.02:1 0.8:1 1.12:1 45 59 Ratio Current Ratio Average collection period (Days) Average Days in Inventory (Days) Net Profit Margin Debt to Equity ratio Return on Equity 15 20 10 6% 8% 3:1 12% 5% 2.5:1 10% 2:1 15% All ratio types are equally important in their importance. 1. Evaluate each ratio type using the methodology described in class. 2. Ensure you develop a scoring methodology (1-5) for the Financial Health category. Use the table provided. 6. Make a supported recommendation on which Supplier to choose. 7. Under which situations would you want to multi-source a critical item versus sole -source a critical item, using the table format (Give at least 2 supported reasons for each)? Special Topic: Supplier Evaluation 100DOR Price Delivery. On time percentage Order Cole Time Opp Ranking Table: LASIC LED Current Rulle Average collection periode Average Duya intentary Day Det qui Rebumen TOTAL La Description Score Supplier info TAM LAS Colar Wrighting and lotul scurd Total Sun Tua Delivery.On ne percentage Orderysteme duty top Francia em TOTAL SCORE Recommendation: Table identifying reasons for Sale sourcing and multi-sourcing for critical items: Sole Sur Mer Reference List Special Topic: Supplier Evaluation Scoring Tables Score:- 1 2 3 4 5 Price Delivery - On-time percentage Order Cycle Time Quality (ppm) Financial Health Ranking Table: Ratio LAS Con Inc. LED Current Ratio Average collection period (Days) Average Days in Inventory (Days) Net Profit Margin Debt to Equity ratio Return on Equity TOTAL Legend: Description Score Supplier Evaluation Table LAS Con Inc. LED Weighting Score Total Score Total Score Total Price Delivery - On-time percentage Order Cycle Time Quality (ppm) Financial Health TOTAL SCORE: Recommendation: Table identifying reasons for Sole sourcing and multi- Sole Source Multi-Source
