Question 15 1 pts ACME Industries has outsourced the delivery of its products an
ID: 366177 • Letter: Q
Question
Question 15 1 pts ACME Industries has outsourced the delivery of its products and now wants to develop a tool to evaluate its transportation carriers. Table A below shows the rating values associated with different levels of price, quality, and delivery performance as well as criteria weights that reflect the importance to ACME of each of these performance dimensions. To illustrate how the ratings work, suppose a carrier has a damage level of 0.82%. This level falls between 0.75- 1.0%, and would therefore be scored as a "2" The second table, Table B shows the actual average performance levels for each of the carriers being evaluated. Table A: Rating Values for Carriers Price (0.2) >$2.50/pound $2.01 to $2.50/pound $1.51 to $2.00/pound $1.00 to $1.50/pound$1.00/pound lity (0.2) Damage > 1% |Damage 0.75-1.0% Damage 0.5-0.74% Damage 0.25-0.49% Damage 95% on time Delivery (06)|Explanation / Answer
Step 1: Given Data
Factor
ABC Trucking
DEF Trucking
XYZ Trucking
Price
$1.98 per pound
$2.02 per pound
$98 per 100 pounds
Quality
99.64% undamaged
0.26% damaged
0.86% damages
Delivery
93% on time
2% late
83% ontime
Step 2:
In the Table A, the price is given for per pound, quality is for the damaged goods and delivery is for on-time.
So, the given data is to be updated accordingly.
For price, XYZ trucking is given for per 100 pounds. So it is updated as
Price per pound = Price/100=98/100=0.98
For the Quality, ABC Trucking is given 99.64% undamaged.
Therefore damaged goods = 100-99.64=0.36%
This means that out of 100%, 99.64% was undamaged and the remaining 0.36% are damaged
For delivery, DEF Trucking is 2% late
Therefore, On-time=100-2=98%
This means that out of the 100%, 2% were late and 98% were on-time.
So, the given data is updated as follows.
Factor
ABC Trucking
DEF Trucking
XYZ Trucking
Price
$1.98 per pound
$2.02 per pound
$0.98 per pounf
Quality
0.36% damaged
0.26% damaged
0.86% damages
Delivery
93% on time
98% on time
83% ontime
Step 3: Rating
From the Table A, the rating given for each factor is given.
Factor
ABC Trucking
Rating
Justification
Price
$1.98 per pound
3
$1.98 is in between $1.51-$2 per pound
Quality
0.36% damaged
4
0.36% is inbetween 0.25-0.49%
Delivery
93% on time
4
93% is in between 91-95% on -time
Factor
DEF Trucking
Rating
Justification
Price
$2.02 per pound
2
$2.02 is inbetween $2.01-$2.50 per pound
Quality
0.26% damaged
4
0.26% is in betwee0.25-0.49%
Delivery
98% on time
5
98% is >95% on time
Factor
XYZ Trucking
Rating
Justification
Price
$0.98 per pound
5
$0.98 is <$1 per pound
Quality
0.86% damages
2
0.86% is in between 0.75-1%
Delivery
83% on time
2
83% is inbetween 82-84%
Step 2: Weighted Rating
Once, the rating values are entered, the weigts given in Table A are used to calculated the weighted rating for each company.
For instance, the weight for Price is 0.2 and the rating for ABC is 3, therefore, the weighted rating is 0.2*3 =0.6. Similarly for all other factors the weighted rating is calculated as shown in the following table.
Factor
Weights
ABC Trucking Rating
ABC Trucking Weighted Rating
DEF Trucking Rating
DEF Trucking Weighted Rating
XYZ Trucking Rating
XYZ Trucking Weighted Rating
Price
0.2
3
=0.2*3= 0.6
2
=0.2*2= 0.4
5
=0.2*5=
1
Quality
0.2
4
=0.2*4= 0.8
4
0.2*4= 0.8
2
=0.2*2=
0.4
Delivery
0.6
4
=0.6*4=
2.4
5
=0.6*5=
3
2
=0.6*2=
1.2
Step 3: Overall Rating
The weighted rating are summed to arrive at the total rating of each company.
Factor
ABC Trucking Weighted Rating
DEF Trucking Weighted Rating
XYZ Trucking Weighted Rating
Price
0.6
0.4
1
Quality
0.8
0.8
0.4
Delivery
2.4
3
1.2
Total Weighted Rating
= 0.6+0.8+2.4
= 0.4+0.8+3
= 1+0.4+1.2
3.8
4.2
2.6
Step 4: Best Carrier
The carrier with higher rating is the best carrier. From the total weighted rating, it is observed that the highest score of 4.2 and hence, DEF Trcuking it is the best carrier.
Step 5 : Winning Score
The weighted rated for ABC Trucking is 3.8, DEF Trucking 4.2 and XYZ Trucking is 2.6. Out of these three 4.2 is the higher values and it is closer to the rating value of 5. Hence, the winning score is 4.2
Factor
ABC Trucking
DEF Trucking
XYZ Trucking
Price
$1.98 per pound
$2.02 per pound
$98 per 100 pounds
Quality
99.64% undamaged
0.26% damaged
0.86% damages
Delivery
93% on time
2% late
83% ontime