solution

You want to select the a vendor to source a key component for your factory. You have identified 4 main parameters to compare vendors. Develop a weighted-point evaluation tool to select the best vendor. You may submit your assignment in excel or word format.

Parameters	Vendor A	Vendor B	Vendor C
On time Delivery	95%	97%	98%
Lead Time	14 Days	21 Days	5 Days
Price	$207.75	$212.25	$228.00
Quality (ppm)	25,000	15,000	2,000

You may use a template similar to the one below,

Parameter	Weight	Vendor A		Vendor B		Vendor C
		Score	Weighted Score	Score	Weighted Score	Score	Weighted Score
Delivery-on time Percentage
Order Cycle Time
Price
Quality(ppm)
Total

Steps to be followed

1. Assign weights to each parameter. (Sum of all weights must equal 1.0) (10 Points)
2. Define a scoring criteria(0-5) for each parameters. You may use the scoring criteria’s in page 391 and 392 (Case 13-1)in you textbook as a reference.(30 Points)
3. Based on your scoring criteria, score each vendor against each parameter.(10 Points)
4. Calculate the weighted score by multiplying the score and the weight. (10 Points)
5. Calculate total weighted score earned by each vendor(10 Points)
6. Which vendor will you select as the best vendor? Why? (15 Points)
7. What are some other parameters that you may use while evaluating a potential vendor.(15 Points)