Question: [Section 3: Decision Analysis in Supply Chain] You are trying to select the logistics service provider for your supply chain network. Five candidates are under
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[Section 3: Decision Analysis in Supply Chain] You are trying to select the logistics service provider for your supply chain network. Five candidates are under consideration. Three decision are safety, cost, and reputation. You have assessed the following pairwise comparison matrix for the AHP approach. Cost Safety 1 Reputation 1/x Safety 1/4 Cost 4 1 1/2 Reputation 2 1 Question 3-1. Assume that x = 3. Please derive the weight values of Safety, Cost, and Reputation. Which criteria is the most important? and the least important? Explain. Question 3-2. Now, assume that comparison result between reputation and safety (x) is missing. As we discussed in class, the Confidence Index (CI) value should be small enough to guarantee your decision consistency. What is the range of x, which makes the CI value be greater than equal to 0.05? What does the range mean? Question 3-3. The rate values of each logistics provider on each criterion is as follows: DHL UPS USPS FedEx Wayne Enterprise Safety 0.4 0.6 0.5 0.4 0.2 Cost 0.6 0.4 0.2 0.7 0.8 Reputation 0.2 0.8 0.9 0.3 0.4 Please find the best service provider using the weighted product approach and weighted sum approach, respectively. Please use the weight values from Question 3-1. Will your results be different based on the approach? Question 3-4. In general, do you think it is possible that the weighted product (WP) approach and the weighted sum (WS) approach can give you different conclusions? For example, WP tells you that A > B> C but the WS approach says A >C> B. You can assume that all the weight and rate values are positive. Your answers may include: 1) Yes, they can provide different preference orders" or "No, they will provide the same preference order all the time." 2) Supporting argument why you think yes or no. [Section 3: Decision Analysis in Supply Chain] You are trying to select the logistics service provider for your supply chain network. Five candidates are under consideration. Three decision are safety, cost, and reputation. You have assessed the following pairwise comparison matrix for the AHP approach. Cost Safety 1 Reputation 1/x Safety 1/4 Cost 4 1 1/2 Reputation 2 1 Question 3-1. Assume that x = 3. Please derive the weight values of Safety, Cost, and Reputation. Which criteria is the most important? and the least important? Explain. Question 3-2. Now, assume that comparison result between reputation and safety (x) is missing. As we discussed in class, the Confidence Index (CI) value should be small enough to guarantee your decision consistency. What is the range of x, which makes the CI value be greater than equal to 0.05? What does the range mean? Question 3-3. The rate values of each logistics provider on each criterion is as follows: DHL UPS USPS FedEx Wayne Enterprise Safety 0.4 0.6 0.5 0.4 0.2 Cost 0.6 0.4 0.2 0.7 0.8 Reputation 0.2 0.8 0.9 0.3 0.4 Please find the best service provider using the weighted product approach and weighted sum approach, respectively. Please use the weight values from Question 3-1. Will your results be different based on the approach? Question 3-4. In general, do you think it is possible that the weighted product (WP) approach and the weighted sum (WS) approach can give you different conclusions? For example, WP tells you that A > B> C but the WS approach says A >C> B. You can assume that all the weight and rate values are positive. Your answers may include: 1) Yes, they can provide different preference orders" or "No, they will provide the same preference order all the time." 2) Supporting argument why you think yes or no