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Rene's Royal Fabrics, a manufacturer of fashion garments and fabric, uses three primary carriers to move fabrics from its Toronto factory to retailers and fashion

Rene's Royal Fabrics, a manufacturer of fashion garments and fabric, uses three primary carriers to move fabrics from its Toronto factory to retailers and fashion designers in Canada and the United States. He wants to evaluate the performance of the three carriers. He collected data for the following metrics over a four-month period.

Performance CriteriaAllied TransportBestway FreightCertaint Carriers
On-time delivery99%98.5%98%
Loads with damage claims0.8%1.8%0.5%
Customer satisfaction ratings4.543.8
Billing accuracy99.2%99.5%98.1%
Loads rejected1.4%2.2%0.8%

Rene asked Abimbola, his transportation manager, to develop a scorecard to help compare the carriers on these five metrics. Abimbola came up with the following chart:

Performance CriteriaWeight Factor
(how important
the criteria is
to your company)
Performance EvaluationMaximum Score PossibleActual Score
(weight factor
multiplied by
performance evaluation)
On-time delivery30more than 98.5% ⇒ 5
96.01 to 98.5% ⇒ 4
93 to 96% ⇒ 2
less than 93% ⇒ 0
150 
Loads with damage claims30less than 0.5% ⇒ 5
0.5 to 1% ⇒ 4
1.01 to 2% ⇒ 2
more than 2% ⇒ 0
150 
Customer satisfaction20more than 4.5 ⇒ 5
4.01 to 4.5 ⇒ 4
3 to 4 ⇒ 2
less than 3 ⇒ 0
100 
Billing accuracy10more than 99% ⇒ 5
97.01 to 99% ⇒ 4
95 to 97% ⇒ 2
less than 95% ⇒ 0
50 
Loads rejected10less than 1% ⇒ 5
1% to 2% ⇒ 4
2.01% to 3% ⇒ 2
more than 3% ⇒ 0
50 
  Total Score500 

Answer the following three questions:

  1. Calculate the performance score (actual score) for each of the three carriers
  2. Which carrier would you recommend that Rene consider for elimination? Why?
  3. If Rene decides to keep all three carriers, what should each of them work to improve?

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