Initially, managers would like to directly use the number above for scoring $$Supplier Capacity$.$ However, considering current demand for their smart phone, increases from lower Supplier Capability is more attractive for the firm than increases from higher Supplier Capability. More specifically, an increase in Suppler Capacity from $400,000$ to $800,000$ is very attractive to the firm, because this increase would considerably satisfy the current demand for smart phone. However, an increase in Suppler Capacity from $800,000$ to $1,500,000$ would be marginal, because the $800,000$ capacity of supplier would be already enough to satisfy the current demand. Thus, the top managers decided to use a function below to score the value on Supplier Capacity $($Figure $1).$

And, regarding Supplier Risk, the top managers, based on their experiences with those suppliers in prior, directly measure the value of each supplier in terms of Supplier Risk $($Figure $2).$