A manufacturing firm is planning to purchase a sub-assembly from one of the available suppliers in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A manufacturing firm is planning to purchase a sub-assembly from one of the available suppliers in the market. In the buying center, four decision-makers from four different departments are involved: (i) finance, (ii) quality control, (iii) engineering design, and (iv) operations management. Due to the criticality of the subassembly, the opinions of decision-makers from "quality control" and "engineering design" are weighted double. There are 3 candidate suppliers in the market and the list of decision-making criteria is shown in the below figure. ECONOMIC Quality Cost Supplier selection ENVIRONMENT Eco-design Resource reduction and consumption SOCIAL Human rights Safety Systems & Occupational Health ETHICAL Conflict of interest Tramperency in Accounting and Business The importance of each criterion set for the decision-makers are as follows: For the decision-maker of the "finance": the importance of "economic" criteria is three-time and the importance of "ethical" criteria is two-time higher than others. For the decision-maker of the "quality control": the importance of "economic" and "environmental" criteria is two-time higher than others. For the decision-maker of the "engineering design": the importance of "economic", "environmental", and "social" criteria is two-time higher than others. For the decision-maker of the "operations management": the importance of all criteria is equal. The performance of each supplier with respect to the criterion list is shown in the below table (green cells are maximization & orange cells are minimization criteria). Supplier 1 Supplier 2 Supplier 3 Economic criteria Environmental criteria Quality cost 20 140 15 110 17 135 Eco-design 10 12 10 Resource usage 10 15 12 Social criteria safety 110 110 115 Human rights 3 5 2 Use the heuristic approach of AHP to prioritize suppliers for this purchase. Ethical criteria Transparency 100 110 110 Conflict of interest 1.5 1 2.5 A manufacturing firm is planning to purchase a sub-assembly from one of the available suppliers in the market. In the buying center, four decision-makers from four different departments are involved: (i) finance, (ii) quality control, (iii) engineering design, and (iv) operations management. Due to the criticality of the subassembly, the opinions of decision-makers from "quality control" and "engineering design" are weighted double. There are 3 candidate suppliers in the market and the list of decision-making criteria is shown in the below figure. ECONOMIC Quality Cost Supplier selection ENVIRONMENT Eco-design Resource reduction and consumption SOCIAL Human rights Safety Systems & Occupational Health ETHICAL Conflict of interest Tramperency in Accounting and Business The importance of each criterion set for the decision-makers are as follows: For the decision-maker of the "finance": the importance of "economic" criteria is three-time and the importance of "ethical" criteria is two-time higher than others. For the decision-maker of the "quality control": the importance of "economic" and "environmental" criteria is two-time higher than others. For the decision-maker of the "engineering design": the importance of "economic", "environmental", and "social" criteria is two-time higher than others. For the decision-maker of the "operations management": the importance of all criteria is equal. The performance of each supplier with respect to the criterion list is shown in the below table (green cells are maximization & orange cells are minimization criteria). Supplier 1 Supplier 2 Supplier 3 Economic criteria Environmental criteria Quality cost 20 140 15 110 17 135 Eco-design 10 12 10 Resource usage 10 15 12 Social criteria safety 110 110 115 Human rights 3 5 2 Use the heuristic approach of AHP to prioritize suppliers for this purchase. Ethical criteria Transparency 100 110 110 Conflict of interest 1.5 1 2.5
Expert Answer:
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
Posted Date:
Students also viewed these marketing questions
-
For all calculations, show all work and explain. Also, use g = 9.81 m/s 2 for all questions. An object is launched horizontally from a height of 14.0 meters. It lands 32.1 meters from the launch pad....
-
A manufacturing firm is planning to purchase new machines for processing four products it manufactures. Demand information and processing time data for the four products are shown in the following...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Lucy just started a new job and her employer offers a 457 plan. She is currently 30 and plans to retire at 65, her goal is to have $1,200,000 in her 457 plan when she retires. How much does she need...
-
1. Which type of bond holds the molecules of the DNA double helix together? (a) Covalent bond. (b) Ionic bond. (c) Einstein bond. (d) Van der Waals bond. 2. In a p-type semiconductor, a hole is (a) A...
-
Property Failures Find a subset of R2 fitting each description. 1. Closed under vector addition but not under scalar multiplication? 2. Closed under scalar multiplication but not under vector...
-
The comparative balance sheet of Fitzwater Company at March 31, 2009, reported the following: Fitzwater's transactions during the year ended March 31, 2009, included the following: Requirements 1....
-
A horizontal cylindrical tank 2.20 m in diameter is half full of water. The space above the water is filled with a pressurized gas of unknown refractive index. A small laser can move along the curved...
-
Peter is 58 years old, has just been made redundant from his job and received a redundancy payment of $80,000. He was with his employer for the past 12.5 years. Peter is married to Maggie. They have...
-
TourneSol Canada, Ltd. is a producer of high quality sunflower oil. The company buys raw sunflower seeds directly from large agricultural companies, and refines the seeds into sunflower oil that it...
-
The following table shows the cost of 1,000 square feet of luxury real estate in three cities together with the quantity your development company intends to purchase in each city. t Cost ($ million)...
-
Envelope Company began operations this month mass-producing pull-and-seal envelopes. During the month of July, it completed 25,000 units and has 20,000 units that are 65% complete. It had product...
-
In its first year of operations, Mary Corp. earned $ 6 1 , 2 0 0 in service revenue. Of that amount, $ 1 0 , 3 0 0 was on account and the remainder, $ 5 0 , 9 0 0 , was collected in cash from...
-
Agarwal, Bergeron, and Cishek have been in partnership for a number of years. The partners allocate all profits and losses on a 2 : 3 : 1 basis, respectively. Recently, each partner has become...
-
Compute the amount that can be borrowed under each of the following circumstances: ( PV of $ 1 , FV of $ 1 , PVA of $ 1 , and FVA of $ 1 ) Note: Use appropriate factor ( s ) from the tables provided....
-
Groro Company bills a client $ 6 9 , 0 0 0 for services provided and agrees to accept the following three items in full payment: ( 1 ) $ 2 0 , 0 0 0 cash, ( 2 ) $ 8 1 , 0 0 0 of equipment, and ( 3 )...
-
A person owns a food delivery company that services various grocery stores in the local community. On his tax form, he reported a truck expense of $2,971.50 for his business. This amount was based on...
-
Use a calculator to evaluate the expression. Round your result to the nearest thousandth. V (32 + #)
-
Gregoire Grant is a traditional manufacturing manager who is concerned only with managing costs over the manufacturing cycle of the product. He argues that since traditional accounting methods are...
-
How do step variable costs differ from fixed costs?
-
Operating budgets: labor hiring plan Strathfield Motel is planning its operations for the upcoming tourist season. The motel has 60 units. The following table presents the average number of daily...
-
What are the main components of corporate directional strategies?
-
Define concept growth. What does this mean to entrepreneurial firms?
-
Discuss the significance of discounting in business decision making.
Study smarter with the SolutionInn App