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Six months ago, Allie Communications introduced a new auditory headset embedded with cutting edge technology that outperforms the major competitors in the industry. Since its
Six months ago, Allie Communications introduced a new auditory headset embedded with cutting edge technology that outperforms the major competitors in the industry. Since its introduction, demand for this product has increased beyond their capability to handle inhouse given their existing manufacturing capacity. In order to keep up with demand, the product manager, Larry Jones, has decided to outsource any components that do not fit within the companys core competencies. As a part of this effort, Jones and his team are evaluating three different vendors to supply a specific group of component parts for the headset. There are dominant factors that are being used in the evaluation. The team has already assigned weights to each of the factors that reflect the importance of each factor relative to the other factors. Additionally, each vendor has been evaluated relative to each factor on a scale from to where is excellent and is poor. The table below shows the factors, the weight assigned to each factor, and the factor score for each factor for each vendor. Answer the following questions based on the information provided.FactorFactor WeightFactor Score for Each VendorVendor Vendor Vendor Reputation
Additional capacity
Proximity to company
Quality assurance
Quick delivery
Product cost
Skilled personnel
Total
a Calculate the overall rating for each of the vendors. Show your
b Which vendor should be selected? Clearly explain why. points
c What if the market shows that the product cost is less of a concern than making sure the vendor selected is able
to ramp up production should the demand increase, resulting in shifting points of the factor weight from Product cost to Additional capacity, what would the new overall rating be for each vendor? Show your calculations. points
d Based on the answer to part c which vendor should be selected? Clearly explain why. points
e Identify and explain additional factors that may come into play with this decision that are not captured by this
method of evaluating vendors. points
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