Lincoln Lights is considering hiring one of three soft-ware firms to implement a new IT system. Lincoln management has decided to evaluate the firms on three dimensions—reputation, skill level, and price. Weights for each dimension, as well as performance ratings for each of the firms (1 = “poor” to 5 = “excellent”), are shown in the following table:

a. (*) Use the weighted-point evaluation system to calculate weighted performance scores for each of the software firms. Would the results change if each dimension had a weight of one-third?
b. In Chapter 2, we described order qualifiers as performance dimensions on which customers demand a minimum level of performance. Basically, if a supplier fails to meet the minimum requirements on any of the qualifiers, that supplier would be eliminated from contention. How would you incorporate the concept of order qualifiers into the weighted-point evaluation system?

Transcribed Image Text:

Software Firm PC DIMENSION WEIGHT ALTREX TGI LTD. ASSOCIATES Reputation Skill level 0.2 4 0.4 4 4 Price 0.4 3 2 3 55