A Chicago-based manufacturer is looking for someone to handle its shipments to the West Coast. In order to evaluate potential transportation providers, the manufacturer has developed the following criteria.

a. Pick up shipments in less than eight hours from the time it is notified. (The manufacturer doesn’t have enough space for shipments to sit around at the dock.)

b. Deliver shipments in 72 hours or less. Beyond this, shippers will be evaluated according to cost and the percentage of shipments that arrive undamaged. Three shippers—McAdoo, Klooless, and Big Al— have put in bids for the business. The relevant performance information for the shippers is shown in the following chart:

a. (**) Using Figure 2.3 as a guide, graph how well each of the shippers performs with regard to the order winners and order qualifiers.

b. (**) Who is most likely to win the business? Why?

c. (**) What’s going on with Big Al? What does Big Al need to do in order to compete successfully for the business?

d. (**) Comment on Klooless’s competitive position. Does it meet the minimum requirements? Is it very competitive? Why or why not?

Transcribed Image Text:

MCADO0 KLOOLESS BIG AL 9 hours Pickup time Shipping time 8 hours 6 hours 48 hours 72 hours 36 hours Cost per 100 lb. shipped % of shipments that arrive undamaged $20 $30 $15 98% 95% 99% Minimum order 99.9% size of 50 liters Performance pure 2 days $20 per liter 3 days Minimum order size of 100 liters Qualifier level (minimum $30 per liter requirements) 99% pure Supplier A = Supplier B Order qualifier Order winners Conformance Delivery speed Cost Flexibility quality How quickly can the chemicals be How much do the chemicals Can we Are the chemicals place small orders for the pure? delivered? cost? chemicals?