Techsoft in the past has outlined four major factors to evaluate its suppliers. All the four suppliers have been ranked (on a scale of 1 to 5,5 being the best) based on their performance in the past. Leaders from Category A and Category B have been surveyed to understand the importance of each of the factors for its customers. For Category A, the importance of each of the factors can be best outlined through a ratio of 1:1:2:2 whereas for Category B through 1:2:2:1. Factor Quality Price Service Delivery Flexit 5 3 5 4 Maxo Inc 3 4 4 4 Worldcomm 3 5 5 3 Nanotech How can the best supplier be identified in each category? What are the benefits of consolidation? What distinguishes the service and delivery factors? 4 3 4 4 What are the factors used to evaluate suppliers? Why are these factors considered the main ones, and what additional factors do you recommend? Why do the evaluation factors differ between categories A and B? What factors can be used to minimize the lead time in the supply chain? What factors can help reduce inventory levels? Figure 4. Supplier uncertainty related information Techsoft currently orders raw materials from all the four suppliers. It is looking to save costs through consolidation to one supplier per Category. Techsoft expects the uncertainty in supply to be similar to the past performance even after the scale up of the chosen supplier. Techsoft expects each of the suppliers to have a fulfillment target of 98% Week Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 Order placed by Techsoft for the raw materials 75 75 75 75 75 75 75 75 75 75 75 75 Flexit fulfillment till the due date 75 77 73 75 74 78 75 74 74 77 75 75 75 Maxo Inc fulfillment till the due date 72 77 75 75 77 75 72 78 78 75 75 71 75 Worldcomm fulfillment till the due date 72 75 74 77 74 75 78 76 74 78 74 73 75 Nanotech fulfillment till the due date 74 76 74 76 73 74 77 77 74 77 76 72 75 Fulfillment of Flexit 100% 103% 97% 99% 99% 104% 100% 98% 99% 103% 99% 100% 100% Fulfillment of Maxo Inc 96% 103% 100% 100% 103% 100% 96% 104% 104% 100% 100% 95% 100% Fulfillment of Fulfillment Worldcomm of Nanotech 96% 100% 99% 103% 99% 100% 104% 101% 99% 104% 99% 97% 100% 99% 101% 99% 101% 97% 99% 103% 103% 99% 103% 101% 96% 100%