Use Excel for the calculations for this problem. Be sure to use the SUMPRODUCT Function

Stevens Technologies has narrowed its choice of an outsourcing provider to three firms located in Canada, China, and England. They want to decide which one of the three countries is the better choice based on a risk-avoidance criteria. They want to choose the country that is the lowest risk. The CEO has polled managers and established four criteria in the table below. The three countries' resulting ratings are presented in the table below, where 1 is a lower risk and 10 is a higher risk. The managers determined the four criteria importance weightings that are listed in the table below. Importance Weight Canada China England Price of service from the outsourcer 0.1 8 1 6 Nearness of facilities to the client 0.6 2 10 8 Level of technology 0.2 3 2 1 History of outsourcing 0.1 2 6 2

Using the factor rating method, which country would you select? (Higher weights imply higher importance and lower ratings imply lower risk) Why?

Which country would you select if the weights for price of service from outsourcer and nearness of facility to client are switched? Now, the price of service from the outsourcer has an importance weight of 0.6 and the nearness of facilities to the client has an importance weight of 0.1.