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?

a. 205
b. 370
c. 37
d. 74
e. 49

Answer 1

D) 74

Step-by-step explanation:

Weighted avg rating for suppliers can be calculated as follows.

First lets arrange the data,

Price 40

Quality 90

Delivery reliability 75

For a total weight sum of 100%, weights can be distributed as

Price 20%

Quality 40%

Delivery 40%

thus weight for the supplier then is,

Weight = (40*0.2) + (90*0.4) + (75*0.4) = 74

Hope that helps.