Question
A mine needs to renew a mill. With the quotes received, the attached table has been prepared, which summarizes the relevant factors for the selection
A mine needs to renew a mill. With the quotes received, the attached table has been prepared, which summarizes the relevant factors for the selection of the supplier.
Factor | Supplier A | Supplier B | Supplier C |
Guarantee | 36 months | 24 months | 18 months |
Annual sales | $70500 000 | $95000 000 | $45000 000 |
Method of payment | Invoice at 180 | Invoice at 90 | Invoice at 360 |
Price | $360 000 | $450 000 | $270 000 |
As part of the selection process, it has been considered that the weightings of the technical and economic proposals are 0.60 (guarantee 0.3 and sales 0.3) and 0.4 (payment method 0.20 and price 0.20), respectively.
They have also developed the following technical scoring reference values:
Factor | Variable | Points |
Guarantee | Warranty period 24 months 24 months > Warranty period 12 months Warranty period < 12 months | 45 20 5 |
Supplier experience (in annual sales) | Equipment sales $50,000,000 $50,000,000 > Equipment sales $30,000,000 Equipment sales < $30,000,000 | 35 15 10 |
Payment facilities | Invoice payment period 360 days 360 days > Invoice payment period 120 days Invoice payment period < 120 days | 40 25 10 |
Price | Amount <= 300,000 400,000 Amount 300,000 Amount 400,000 | 30 20 10 |
With the information provided, you are asked to evaluate the quotes and indicate the best proposal. Use some purchasing evaluation methodology
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To evaluate the supplier proposals and select the best option for the mines mill renewal project well use a Weighted Scoring Model based on the provid...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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