Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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.

1. Categorical Method

Supplier Quality Distance Price Result
Supplier A
Supplier B

Which supplier?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets Of Eastern Europe And The Former Soviet Union

Authors: François Perquel

1st Edition

1855733404,1782420002

More Books

Students also viewed these Finance questions

Question

6. Outline the steps in designing effective incentive plans.

Answered: 1 week ago

Question

9. Discuss the challenges confronting the growth of MFIs in Africa.

Answered: 1 week ago