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First, determine the Capability Index (show your results) for each supplier for your quality rating. Indicate which of the three suppliers should be used for FY2021. Develop a supplier scorecard using the following scale: 3=best, 2=second best, 1=worst and the weights provided in the case to support your selection.

Alternative Suppliers

The company has contacted potential alternative suppliers in China, who have offered the following information relative to the current supplier:

Supplier Characteristic	Current	Alternative A	Alternative B
Unit Price, $/3-sock set	$ 6.50	$ 5.75	$ 5.00
Order Cost, $/order	$ 250.00	$ 325.00	$ 200.00
QA Pck	TBD	TBD	TBD
Financial Condition of the firm	Good	Poor	Fair

Supplier Characteristic	Weight
Unit Price, $/3-sock set	0.4
Order Cost, $/order	0.1
QA Pck	0.3
Financial Condition of the firm	0.2

For the quality performance assessment of the suppliers, Throx would like you determine the Capability Index for each Supplier based on the following information. Target Sock Thickness: 6mm +/- 1mm

Measures in mm	Current	Alternative A	Alternative B
Mean Sock Thickness	6	5.7	6.2
Standard Deviation	0.2	0.2	0.2