Your manager has decided to reduce the number of suppliers for a critical subassembly from three to two. She has asked you to review the three current suppliers (A, B, and C) and to recommend which one to eliminate from the approved suppliers list. You confer on the ground rules and agree that a multiplier of three will be assigned for best performance in a category, two for second place, and one for last place.
You have been provided the following data:
Quality is the leading attribute to be considered and has been assigned a 45% weighting. The best record for quality has been achieved by Supplier C, followed by Supplier A, and Supplier B in last place.
Warranty length is the second most important attribute with a 30% weight. Warranties are three years for Supplier A, five years for Supplier B, and two years for Supplier C.
Cost is the last consideration with a relative weight of 25%. Subassemblies from Suppliers A and C each cost $7500 while those from Supplier B cost $6500. All values include shipping and delivery charges.
Create a simple MS Excel spreadsheet to enter the relevant data and to calculate the composite score for each of the three suppliers. Post your spreadsheet for the class and state your recommendation for which supplier to drop from the list. Use the spreadsheet to calculate your answers rather than just using it as a presentation matrix for the answers.
It is a good rule of thumb to present your analysis in a response of, at least, 250 words. This gives you an opportunity to show you understand the concept and the process you would use to choose a valued supplier. In your written response, focus on your analysis over the process by which you completed the calculations.
The post Weighted Point Supplier Evaluation Tool using MS Excel appeared first on PapersSpot.