2. A Chicago-based manufacturer is looking for someone to handle its shipments to the West Coast. In order to evaluate potential transportation providers, the manufacturer has developed the following criteria.

At a minimum, a shipper must be able to:

a. Pick up shipments in less than eight hours from the time it is notified (the manufacturer doesn’t have enough space for shipments to sit around at the dock).

b. Deliver shipments in 72 hours or less.

Beyond this, shippers will be evaluated according to cost and the percentage of shipments that arrive undamaged.

Three shippers—McAdoo, Klooless, and Big Al—have put in bids for the business. The relevant performance information for the shippers is shown in the following chart:

a. (**) Using Figure 2.3 as a guide, graph how well each of the shippers performs with regard to the order winners and qualifiers.

b. (**) Who is most likely to win the business? Why?

c. (**) What’s going on with Big Al? What does Big Al need to do in order to compete successfully for the business?

d. (**) Comment on Klooless’s competitive position.
Does it meet the minimum requirements? Is the company very competitive? Why or why not?

Transcribed Image Text:

MCADOO KLOOLESS BIG AL Pickup time Shipping time 6 hours 8 hours 9 hours 48 hours 72 hours 36 hours Cost per 100 lbs. $20 $30 $15 shipped % of shipments 98% 95% 99% that arrive undamaged