Problem Statement: You have obtained quotes from four different suppliers, and you are having a hard time deciding on which one is the best. A complicating factor includes that some of the desired attributes are not easily measurable, so you have decided to use AHP to facilitate your decision making. The four suppliers you are considering are Supplier A, Supplier B, Supplier C and Supplier D. The attributes that you are considering are price, quality, innovation potential, anticipated relationship quality (i.e. how well your firm is likely to be able to work with the supplier in a good relationship), and supplier leadership (how well the supplier is led by its executives). Not all of these attributes are equally important to you, and thus you have evaluated them in a pairwise fashion in terms of their importance. A summary of your assessment is provided below. You evaluate price as strongly less important than quality, moderately to strongly less important than innovation potential, strongly less important than relationship quality, and moderately less important than leadership. In addition. you evaluate quality as moderately more important than innovation potential, strongly more important than relationship quality, and very strongly to extremely strongly more important than leadership. Innovation potential is equally important to relationship quality, and moderately more important than leadership. Relationship quality is moderately to strongly more important than leadership. For the first three attributes (price, quality, innovation potential) you were able to obtain quantitative measures based on the RFP you have sent out: the suppliers have provided to you their prices that they want to charge you for the item (in dollars), they have provided you their average parts per million (ppm) defective with other customers over the last year (this serves as a measure for quality), and they have provided you with the total dollar volume that they have budgeted for new research and development initiatives in the next year (this serves as a measure of innovation potential). These relevant pieces of information are extracted below. Price: Supplier A quoted a price of $550 Supplier B a price of $700 Supplier C a price of $1,150 Supplier D a price of $2,000 Quality: Supplier A reported 5500ppm defective Supplier B reported 3250ppm defective Supplier C reported 6000ppm defective Supplier D reported 5650ppm defective. Innovation Potential: Supplier A plans to invest $2,000,000 in R\&D over the next year Supplier B plans to invest $1,000,000 in R\&D over the next year Supplier C plans to invest $700,000 in R\&D over the next year Supplier D plans to invest $500,000 in R\&D over the next year For the attributes of anticipated relationship quality and supplier leadership you have to rely on subjective judgments provided by your team. The results of their group meeting, in terms of their comparisons on the relative merits of each supplier on these dimensions, is also provided below. Anticipated Relationship Quality: Team assessments of the suppliers in terms of relationship quality yielded the following comparisons: Supplier A is very strongly to extremely strongly better than Supplier B, very strongly better than Supplier C, and strongly better than Supplier D. Supplier B is moderately better than Supplier C and equally to moderately better than Supplier D. Supplier C is equally good than Supplier D. Supplier Leadership: Team assessments of the suppliers in terms of their executive leadership yielded the following comparisons: Supplier A is equally to moderately better than Supplier B, very strongly to extremely strongly better than Supplier C, and equally to moderately better than Supplier D. Supplier B is moderately to strongly better than Supplier C, and moderately better than Supplier D. Supplier C is equally good than Supplier D. Assignment Please perform a complete AHP analysis (all four steps) with the information provided above, and discuss the final result. Problem Statement: You have obtained quotes from four different suppliers, and you are having a hard time deciding on which one is the best. A complicating factor includes that some of the desired attributes are not easily measurable, so you have decided to use AHP to facilitate your decision making. The four suppliers you are considering are Supplier A, Supplier B, Supplier C and Supplier D. The attributes that you are considering are price, quality, innovation potential, anticipated relationship quality (i.e. how well your firm is likely to be able to work with the supplier in a good relationship), and supplier leadership (how well the supplier is led by its executives). Not all of these attributes are equally important to you, and thus you have evaluated them in a pairwise fashion in terms of their importance. A summary of your assessment is provided below. You evaluate price as strongly less important than quality, moderately to strongly less important than innovation potential, strongly less important than relationship quality, and moderately less important than leadership. In addition. you evaluate quality as moderately more important than innovation potential, strongly more important than relationship quality, and very strongly to extremely strongly more important than leadership. Innovation potential is equally important to relationship quality, and moderately more important than leadership. Relationship quality is moderately to strongly more important than leadership. For the first three attributes (price, quality, innovation potential) you were able to obtain quantitative measures based on the RFP you have sent out: the suppliers have provided to you their prices that they want to charge you for the item (in dollars), they have provided you their average parts per million (ppm) defective with other customers over the last year (this serves as a measure for quality), and they have provided you with the total dollar volume that they have budgeted for new research and development initiatives in the next year (this serves as a measure of innovation potential). These relevant pieces of information are extracted below. Price: Supplier A quoted a price of $550 Supplier B a price of $700 Supplier C a price of $1,150 Supplier D a price of $2,000 Quality: Supplier A reported 5500ppm defective Supplier B reported 3250ppm defective Supplier C reported 6000ppm defective Supplier D reported 5650ppm defective. Innovation Potential: Supplier A plans to invest $2,000,000 in R\&D over the next year Supplier B plans to invest $1,000,000 in R\&D over the next year Supplier C plans to invest $700,000 in R\&D over the next year Supplier D plans to invest $500,000 in R\&D over the next year For the attributes of anticipated relationship quality and supplier leadership you have to rely on subjective judgments provided by your team. The results of their group meeting, in terms of their comparisons on the relative merits of each supplier on these dimensions, is also provided below. Anticipated Relationship Quality: Team assessments of the suppliers in terms of relationship quality yielded the following comparisons: Supplier A is very strongly to extremely strongly better than Supplier B, very strongly better than Supplier C, and strongly better than Supplier D. Supplier B is moderately better than Supplier C and equally to moderately better than Supplier D. Supplier C is equally good than Supplier D. Supplier Leadership: Team assessments of the suppliers in terms of their executive leadership yielded the following comparisons: Supplier A is equally to moderately better than Supplier B, very strongly to extremely strongly better than Supplier C, and equally to moderately better than Supplier D. Supplier B is moderately to strongly better than Supplier C, and moderately better than Supplier D. Supplier C is equally good than Supplier D. Assignment Please perform a complete AHP analysis (all four steps) with the information provided above, and discuss the final result
