The Bennet Company purchases one of its essential raw materials from three suppliers. Rennet?s current policy is so distribute purchases equally among the three. The owner?s son, Benjamin Rennet, just graduated from a business college. He proposes that these suppliers be rated (high numbers mean a good performance) on six performance criteria weighted as shown in the table. A total score hurdle of 0.60 is proposed to screen suppliers. Purchasing policy would be revised to order raw material from suppliers with performance scores greater than the total score hurdle, in proportion to their performance rating scores.

a. Use a preference matrix to calculate the total weighted score for each supplier.

b. Which supplier(s) survived the total score hurdle? Under the younger Bennett?s proposed policy, what proportion of orders would each supplier receive?

c. What advantages does the proposed policy have over the current policy?

Transcribed Image Text:

Bennet Supplier Performance Scores Rating Performance Criterion Price Quality Delivery Production Facilities Warranty/Claim Weight Supplier A 0.2 0.2 0.3 0.1 0.1 Policy Financial Position 0.1 0.6 0.6 0.6 0.5 0.7 0.9 Supplier B 0.5 0.4 0.6 0.9 0.8 0.9 Supplier C 0.9 0.8 0.8 0.6 0.6 0.7 Bennet Supplier Performance Scores Rating Performance Criterion Price Quality Delivery Production Facilities Warranty/Claim Weight Supplier A 0.2 0.2 0.3 0.1 0.1 Policy Financial Position 0.1 0.6 0.6 0.6 0.5 0.7 0.9 Supplier B 0.5 0.4 0.6 0.9 0.8 0.9 Supplier C 0.9 0.8 0.8 0.6 0.6 0.7

Answer rating: 100% (QA)

a Performance Weighted Rating Criterion Weight Supplier A Supplier B Supplier C 1 Pric... View the full answer