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Your firm is one of several suppliers providing an important component to a major Original Equipment Manufacturer (OEM). Your firm just received feedback from the
Your firm is one of several suppliers providing an important component to a major Original Equipment Manufacturer (OEM). Your firm just received feedback from the OEM on the results from their supplier performance evaluation of your firm. This evaluation is based on six weighted-criteria, as follows with respective weightings noted: Cost (0.20); Delivery (0.15); Environment (0.10); Quality (0.25); Responsiveness (0.20); and Technology (0.10). The total weighted-score is 80 , which is good, but is not quite adequate to reach the "preferred supplier" status the OEM requires. The OEM indicates you need to achieve a weighted-score of 85 , in order to become a "preferred supplier." Future business is at risk if sufficient improvements cannot be achieved. As internal SCM specialist, your President has requested you to review the results, and respond back. Your firm needs to begin making improvements, but the current budget is limited. You need to identify to your President, what are the top three criteria areas needing improvement, in order of priority, and provide quantitative justification for you ranking. The feedback results from the OEM are summarized in the following table
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