5. Flynn Industries has outsourced the delivery of its products, and now wants to develop a tool to help it evaluate its transportation carriers. The first table on the next page shows the rating values associated with different levels of price, quality, and delivery performance, as well as criteria weights that reflect the relative importance of these dimensions. To illustrate how the ratings work, suppose a carrier has a damage level of 0.82%. This would fall between 0.75% and 1.0%, thereby garnering a rating of two. The second table (on next page) shows actual average performance levels for three carriers.

a. (*) Use the weighted-point evaluation system to calculate the weighted average performance for each carrier.
Who is “best”?

b. (**) How would the results change if the weights for price, quality, and delivery shifted to 0.6, 0.2, and 0.2, respectively?

c. (**) Based on the results, should Flynn Industries single source or not? What might stop Flynn from single sourcing?

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Rating Values (SUPPLIERS ARE RATED ON A SCALE OF 1 TO 5, DEPENDING ON THEIR SPECIFIC PERFORMANCE LEVELS) 2 $2.01-$2.50/lb 3 $2.50/lb Damage >1% Delivery (0.60) <82% on-time Quality (0.20) Damage 0.75-1.0% 82-84% on-time $1.51-$2.00/lb Damage 0.5-0.74% $1.00-$1.50/lb 85-90% on-time 91-95% on-time Damage 0.25-0.49% Damage <0.25% >95% on-time