Question: 4. (20 points) In 2003, a review panel from Valley Metro Rail, of Phoenix, Arizona, selected Kinki Sharyo Co. of Japan to supply cars for
4. (20 points) In 2003, a review panel from Valley Metro Rail, of Phoenix, Arizona, selected Kinki Sharyo Co. of Japan to supply cars for the Phoenix area's light rail system. The contract is for S115 million and includes 36 railcars priced at $2.92 million each, with options on an additional 39 vehicles for the 20-mile system, planned to start operations in December 2006. Kinki Sharyo was selected over Bombardier of Canada, Siemens of Germany, and CAF USA of Spain. The panel considered technical criteria, company capabilities, and price" in selecting the bidder.'" Make the following assumptions: Assume that the scores for each supplier for each category are defined as in the table below. The criteria are listed in the table according to their order of importance Scores and data for various attributes of potential railcar suppliers Categor Supplier Price AEC Reliability Capaty Technical specifications Sunplier A S104.60 S1083 Supplier B S105.58S12.48 SupplierC S100.64 $13.62 Supplier D S106.69 S14.03 0.835 0.915 0.943 0.899 10 6 10 Threshold S106.00S14.00 Ideal 0.90 0.980 100.00 $10.00 10 10 For the given data, (a) Are there any suppliers that are dominated? Which suppliers make up the efficient frontier? (b) Perform a static threshold analysis, using the given standards (e) Perform a dynamic threshold analyses, using the given standards. How do the results in (b) and (c) differ? Provide a ranking of criteria by computing a score (weighted average of attribute scores that have been scaled) for each supplier (d)
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