Question: Use Excel for the calculations for this problem. Be sure to use the SUMPRODUCT Function Sunnyville Manufacturing has narrowed its choice of an outsourcing provider
Use Excel for the calculations for this problem. Be sure to use the SUMPRODUCT Function
Sunnyville Manufacturing has narrowed its choice of an outsourcing provider to three firms -Quickly Inc., Thrifty Inc., and Burban, Inc. They want to decide which one of the three suppliers is the better choice based on a risk-avoidance criteria. They want to choose the supplier that is the lowest risk. 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 risk and 10 is a higher risk. The managers determined the five criteria importance weightings that are listed in the table below.
|
| Importance Weight | Quickly Inc. | Thifty Inc. | Burban Inc. |
| Price of service from the outsourcer | 0.4 | 8 | 1 | 3 |
| Nearness of facilities to the client | 0.1 | 2 | 9 | 10 |
| Level of technology | 0.2 | 1 | 6 | 7 |
| History of outsourcing | 0.1 | 5 | 2 | 2 |
| Reputation in the industry | 0.1 | 1 | 6 | 5 |
- (7 points) Using the factor rating method, which country would you select? (Higher weights imply higher importance and lower ratings imply lower risk) 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.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
