4. Lincoln Lights is considering hiring one of three software firms to implement its electronic data interchange (EDI)

system. Lincoln management has decided to evaluate the firms along three dimensions: reputation, skill level, and price.Weights for each dimension, as well as performance ratings for each of the firms (1 poor to 5 excellent)

are as follows:

a. (*) Use the weighted-point evaluation system to calculate weighted performance scores for each of the software firms. Would the results change if each dimension had a weight of 1/3?

b. (**) In Chapter 2, we described order qualifiers as performance dimensions on which customers demand a minimum level of performance. Basically, if a supplier fails to meet the minimum requirements on any of the qualifiers, that supplier would be eliminated from contention. How would you incorporate the concept of order qualifiers into the weighted-point evaluation system?

Transcribed Image Text:

Software Firms DIMENSION WEIGHT ALTREX TGI LTD. PC ASSOCIATES Reputation Skill level Price 0.2 20 0.4 0.4 355 4 5 4 4 3 2