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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:


FactorVariablePoints

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

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