Question

Adelie Enterprises is exploring a new service to provide weekly delivery of grocery items to homes in the greater Greenwood area. The company’s customers place Web-based orders and Adelie’s team assembles and delivers the orders in specially designed cardboard boxes. Management, interested in locating a supplier that can provide boxes cheaply and efficiently, has discovered that each potential supplier’s ability to satisfy the company’s requirements is influenced by the level of demand. The following table provides Adelie’s vendor selection criteria, criterion weights, and rankings (1–10 with 10 being the highest) under the assumption that low, medium, or high demand is generated for their service.
SUPPLIER RATING UNDER LOW, MODERATE, AND HIGH LEVELS OF DEMAND


a. Which supplier should be selected if there is low demand for Adelie’s new service; which supplier should be selected under moderate demand assumptions; under high demand assumptions?
b. Which supplier is selected if Adelie evaluates each alternative using a Maximin decision criterion (see Supplement A, “Decision Making”)?
c. Which supplier achieves the highest expected ranking if the probability of low demand is 35 percent, moderate demand is 45 percent, and high demand is 20percent?


$1.99
Sales0
Views128
Comments0
  • CreatedNovember 07, 2013
  • Files Included
Post your question
5000