Question

A company is determining which of two​ suppliers, Supplier A or Supplier​ B, should be used to source a component part. The company has developed the weights to evaluate the suppliers. The purchasing manager for the company has assigned the raw scores to the two suppliers.

Factors Weight
Technical 0.15
Managment 0.15
Quality 0.20
Delivery 0.25
Price 0.25

The purchasing manager for the company has assigned the following raw scores to the two suppliers:

Factors Supplier A Raw Score Supplier B Raw Score
Technical 80 95
Management 90 85
Quality 70 80
Delivery 85 90
Price 95 85

Use a​ weighted-factor analysis to identify the supplier that the company should use to source the component part.

Answer 1

The Total Weight Score of Supplier B > The Total Weight Score of Supplier A

Step-by-step explanation:

So, in this question we are asked to use the weighted-factor analysis to decide the supplier. Hence, it is a decision making method using weights which are given.

Supplier A Calculations:

First of all, we need to calculate the weight score for each factor.

And the formula to calculate the weight score is = Raw score multiply by weight.

For Technical Factor:

Weight score = 0.15 x 80

Weight score = 12

Similarly,

For Management Factor:

Weight score = 0.15 x 90

Weight score = 13.5

For Quality Factor:

Weight score = 0.20 x 70

Weight score = 14

For Delivery Factor:

Weight score = 0.25 x 85

Weight score = 21.25

For Price Factor:

Weight score = 0.25 x 95

Weight score = 23.75

Similarly, we have to calculate the weight for Supplier B for each factor as well.

Supplier B calculations:

For Technical Factor:

Weight score = 0.15 x 95

Weight score = 14.25

For Management Factor:

Weight score = 0.15 x 85

Weight score = 12.75

For Quality Factor:

Weight score = 0.20 x 80

Weight score = 16

For Delivery Factor:

Weight score = 0.25 x 90

Weight score = 22.5

For Price Factor:

Weight score = 0.25 x 85

Weight score = 21.25

Now, we have to calculate the real weight of suppliers by adding together the individual weight scores of each supplier and then compare between them to decide, which one to choose.

For Supplier A:

Total Weight Score = 12 + 13.5 +14 + 21.25 + 23.75

Total Weight Score = 84.5

Similarly,

For Supplier B:

Total Weight Score = 14.25 + 12.75 + 16 + 22.5 + 21.25

Total Weight Score = 86.75

Conclusion:

The Total Weight Score of Supplier B > The Total Weight Score of Supplier A

Hence, Supplier B should be selected.