Problem 10-7 Your company has used competitive bidding to select a supplier for

Question

Problem 10-7 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 Rating Supplier B Rating Supplier C Rating Weight 40% 29% 20% 11% Category Quality systems Financial stability Management experience 2 4 All scores on a five-point scale with 1poor, 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

Explanation / Answer

a) Weights for various categories are

The weighted score is calculated as the sum of the product of the factor score and their respective weights for the particular supplier. So using this formula the total weighted score for each supplier are

b) Based on the rating supplier C apoears to be the best as it has a highest total weighted score

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