Question

An industrial producer is searching for a supplier for ball bearings. Its three most important supplier criteria are price, quality, and delivery reliability. The firm has decided that quality and delivery reliability should carry the same weight, and that each of them are twice as important as price. If the weights sum to 100%, what would a supplier with ratings of 40, 90, and 75 in the three respective categories score as a weighted total?

Answer 1

74%

Explanation:

Let the weight of price = y%

The weight of quality = 2y%

The weight of delivery reliability = 2y%

Since the sum total of the weights is 100, it implies that:

y% + 2y% + 2y% = 100%

5y% = 100%

y = 100/5

y = 20

So the respective weights are as below:

Price = 20%

Quality = 40%

Delivery reliability = 40%

Weight score = score x category weight

For the supplier:

Price score = 40

Quality score = 90

Delivery reliability score= 75

Overall weighted score = (Price score x Price weight) + (Quality score x Quality weight) + (Delivery reliability score x delivery reliability weight)----- (1)

Substituting into (1), we have :

Overall weighted score = (40 x 20%) + (90 x 40%) + (75 x 40%)

= 8 +36 +30

= 74%