Question: Reconsider Figure 2 . 3 . Suppose Supplier B improves its conformance quality so that the chemicals it produces are now 9 9 . 9

Reconsider Figure 2.3. Suppose Supplier B improves its
conformance quality so that the chemicals it produces are
now 99.9% pure. The chart at the top of this page shows
the new competitive situation:
a.(*) Will this be enough to make Supplier B competitive?
Which supplier do you think will win the business?
b.(**) Managers at Supplier A have determined that if
they increase the minimum order size to 80 liters, they
can decrease their costs to $18 per liter. Should they \table[[,A,B,C,D,E,F,G],[1,Calculating the Value Index for Two Alternative Suppliers],[2,,,,,,,],[3,Performance: 1= "poor" to 5= "excellent",,],[4,Importance: 1= "completely unimportant" to 5= "critical",,],[5,,,,,,,],[6,,,,Performance,Value Index],[7,,,Importance,Supplier 1,Supplier 2,Supplier 1,Supplier 2],[8,Performance quality,5,4,3,20,15],[9,Conformance quality,4,5,4,20,16],[10,Delivery reliability,2,5,4,10,8],[11,Delivery speed,3,1,3,3,9],[12,Cost,,2,3,5,6,10],[13,Mix flexibility,2,2,1,4,2],[14,Volume flexibility,3,4,1,12,3],[15,,,,,Totals:,75,63]]
do it? Explain your logic. (Hint: There is no single right
answer to this problem.)
 Reconsider Figure 2.3. Suppose Supplier B improves its conformance quality so

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