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Problem Two suppliers are competing from one another to get your approval as a purchaser. There are three aspects to consider such as Quality, Service
Problem
Two suppliers are competing from one another to get your approval as a purchaser.
There are three aspects to consider such as Quality, Service and Price. The following are
the reported information for the 2 suppliers. They want to prioritize quality with a weight
of 50. 35 and 15 weights for service and price respectively.Supplier Dito
The quality of their product is good; the service is also good but the price is
unsatisfactory. They also provided the costs for quality and service and computed a
ratio of 1.5% and 2.5% respectively. The quoted price is Php120 per unit. They have 100% quality rating (50 out of 50 products). They also provide a fast service with 98% rating. The price is very expensive from the lowest price which is 9% higher. Supplier Doon
The quality of their product is unsatisfactory; the service is good and the price is good.
They also provided the costs for quality and service and computed a ratio of 1% and 2%
respectively. The quoted price is Php110 per unit. They have 90% quality rating out of 55
products. They also provide a service rating of 90%. They offer the lowest price among the suppliers
Which supplier are you going to choose based on the
1. Categorical Method
2. Cost-Ratio
3. Linear Averaging
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