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.SupplierDoon

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. Cost-ratio Method