You are responsible in choosing between the two suppliers in your area. You have considered Quality, Distance and Price as the three main factors in grading the. The following are the reported information for the 2 suppliers. They want to prioritize distance with a weight of 50. 35 and 15 weights for quality and price respectively.

Supplier A The quality of their product is unsatisfactory; the distance is neutral, and the price is good. They also computed a ratio of 2% and 3% for quality cost and delivery cost. The total cost serves as the total penalty. The quoted price is Php100 per unit. You inspected the products and only 48 out of 60 products passed the quality check. However, with their distance being neutral, it has a rating of 95%. They offer the lowest price among the suppliers.

Supplier B The quality of their product is good; the distance is neutral and the price is neutral. They also computed a ratio of 3% and 2% for quality cost and delivery cost. The total cost serves as the total penalty. The quoted price is Php120 per unit. You inspected the products and 54 out of 60 products passed the quality check. The distance rating is same with supplier A. The price of Supplier B is 20% higher than Supplier A.

Which supplier are you going to choose based on the

1. Cost-ratio Method

Supplier	Quality Cost Ratio	Service Cost Ratio	Total Penalty	Quoted Price	Net Adjusted
Supplier A	%	%	%
Supplier B	%	%	%

Which supplier?