Question: Management, interested in locating a supplier that can provide components cheaply and efficiently, has discovered that each potential supplier's ability to satisfy the company's requirements

Management, interested in locating a supplier that can provide components cheaply and efficiently, has discovered that each potential supplier's ability to satisfy the company's requirements is influenced by the level of demand. The following table provides Schneider Electric vendor selection criteria, criterion weights, and rankings (1-10 with 10 being the highest) under the assumption that low, moderate, or high demand is generated for their service. Weight Low Local supplier National supplier International supplier Moderate Thigh Low Moderate Fligh Low Moderate ligh 7 4 7 7 7 6 0.4 8 6 0.1 9 6 4 7 7 7 5 6 7 Product Quality Delivery Speed Product Price Environmental Impact 6 6 B 9 B B 9 03 0.2 6 9 9 9 8 8 7 7 7 Table: Supplier rating under low, moderate and high levels of demand f. Which supplier should be selected if there is low demand from Schneider Electric? Which supplier should be selected under moderate-demand assumptions? Under high-demand assumptions? 5 marks g. Which supplier is selected if Schneider Electric evaluates each alternative using a maximin decision criterion? 5 marks h. Which supplier achieves the highest expected ranking if the probability of low demand is 35 percent, moderate demand is 40 percent, and high demand is 25 percent? 5 marks
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