Question: Use Excel for the calculations for this problem. Be sure to use the SUMPRODUCT Function Honskey Manufacturing has narrowed its choice of an outsourcing provider

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

Honskey Manufacturing has narrowed its choice of an outsourcing provider to three firms -Dollar Inc., Quick Star Inc., and Lockhart , Inc. They want to decide which one of the three suppliers is the better choice based the factor rating method. The CEO has polled managers and established four criteria in the table below. The three suppliers' resulting ratings are presented in the table below, where 1 is a lower importance and 10 is a higher importance. The managers determined the five criteria importance weightings that are listed in the table below.

Importance Weight

Dollar Inc.

Quick Star

Inc.

Lockhardt

Inc.

Price of service from the outsourcer

0.4

9

5

2

Nearness of facilities to the client

0.1

2

7

10

Level of technology

0.2

4

6

5

History of outsourcing

0.1

5

2

2

Reputation in the industry

0.1

4

3

7

  1. (7 points) Using the factor rating method, which country would you select? (Higher weights imply higher importance and lower ratings imply lower importance) Why?
  2. (3 points) Which country would you select if the weights for price of service from outsourcer and reputation are switched? Now, the price of service from the outsourcer has an importance weight of 0.1 and the reputation has an importance weight of 0.4.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!