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A weighted scorecard is used to compare three suppliers for a product. Determine the total weighted scores for the suppliers and which supplier would be preferred. Use a 10-point scale. Note that excellent

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Question Completion:

Note that excellent - 10, good- 8, fair-6, poor- 4.

Performance Criteria Weight Ideal Supplier A Supplier B Supplier C

On-time performance 30% 100% 92% 98% 96%

Pricing 25% $25 $28 $26 25%

Customer service 25% Excellent Excellent Good Fair

Meets quality check 10% 100% 96% 100% 100%

Order change request 10% Excellent Fair Good Poor

Answer:

a) Determination of the total Weighted Scorecard:

Performance Criteria Supplier A Supplier B Supplier C

On-time performance 27.6% 29.4% 28.8%

Pricing 22.3% 24.0% 25.0%

Customer service 25.0% 20.0% 15.0%

Meets quality check 9.6% 10.0% 10.0%

Order change request 6.0% 8.0% 4.0%

Total score 90.5% 91.4% 82.8%

b) Supplier B would be preferred. It has got the highest weighted score.

Step-by-step explanation:

a) Data and Calculations:

We shall calculate the Supplier A weight as an example:

Performance Criteria Weight Ideal Supplier A Weighted Calculations

On-time performance 30% 100% 92% 27.6% (92% * 30%)

Pricing 25% $25 $28 22.3% ($25/$28 * 25%)

Customer service 25% Excellent Excellent 25% (100% * 25%)

Meets quality check 10% 100% 96% 9.6% (96% * 10%)

Order change request 10% Excellent Fair 6% (6/10 * 10%)

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