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.
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| 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 |
- (7 points) Using the factor rating method, which country would you select? (Higher weights imply higher importance and lower ratings imply lower importance) Why?
- (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.
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