Question: 7) Having selected outsourcing as a viable option, Fox Industries must now choose between two competing bids from potential contract manufacturers. Both Blackstreet Production and

7) Having selected outsourcing as a viable
7) Having selected outsourcing as a viable option, Fox Industries must now choose between two competing bids from potential contract manufacturers. Both Blackstreet Production and Walters Widgets have made competing offers at similar prices. The summary data for the two contract manufacturers is given below: Performance Dimension Blackstreet Production Walters Widgets Price $.72 per unit $.75 per unit Quality 7% defective 2% defective Dependability 95% on time 91% on time Lead time 10 days 3 days Based on a traditional five-point scale (5 being the highest), the following weights and rankings were given to both organizations: Performance Dimension Weight Blackstreet Production Walters Widgets Price .2 5 Quality .4 3 Dependability 25 3 Lead time .15 2 Using the weighted point evaluation system, which contract manufacturer should Fox award the business to? A) Blackstreet Production 81 Walters Widgets 4 4 4 4 8) Refer to the previous problem about Fox Industries, Imagine that a new procurement manager dislikes the current weights, and demands that you treat all criteria the same. Using the weighted point evaluation system, which contract manufacturer would Fox award the business to if all performance dimensions were equally weighted? A) Blackstreet Production B) Walters Widgets

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