Question

Your company has used competitive bidding to select a supplier for janitorial services. Three suppliers returned acceptable bids within the allotted time frame. Supplier A Supplier B Supplier C Category Weight Rating Rating Rating Quality systems 37% 3 3 4 Financial stability 28% 2 4 3 Management experience 20% 3 2 3 Price 15% 1 4 3 picture Click here for the Excel Data File All scores on a five-point scale with 1 = poor, 5 excellent.

a. Calculate the total weighted score for each supplier. (Round your answers to 2 decimal places.) Total Weighted Score
Supplier A
Supplier B
Supplier C
b. Based on these ratings from the supplier assessment, which supplier appears to be the best?
Supplier A
Supplier B
Supplier C

Answer 1

a. Total weighted score:

This is a weighted average of the supplier scores in various categories.

Supplier A

= ∑(Weight of category * rating in category)

= (37% * 3) + (28% * 2) + (20% * 3) + (15% * 1)

= 2.42

Supplier B

= (37% * 3) + (28% * 4) + (20% * 2) + (15% * 4)

= 3.23

Supplier C

= (37% * 4) + (28% * 3) + (20% * 3) + (15% * 3)

= 3.37

b. Based on the ratings, Supplier C appears to be the best.