The Michelle Equipment Company is in the process of ranking its suppliers for one of its key

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The Michelle Equipment Company is in the process of ranking its suppliers for one of its key components. To assist in the evaluation process, the information on the three suppliers is shown in the table below.

Score Performance Criteria Weight Sun Gamecocks Spartans Devils 85 Price 0.10 90 80 Payment terms 0.20 90 95 85 Quality

Each performance category is scored on a scale from 0 (unsatisfactory) to 100 (excellent) and assigned a weight based on its relative importance. Suppliers are considered “preferred” if they score between 90 and 100. Preferred suppliers are those that Michelle Equipment will work with on new product development, approve for new business, and assist in maintaining a competitive position. An “acceptable” supplier rating is between 70 and 89. In this category, the supplier is required to provide a plan to Michelle Equipment on how to achieve preferred status. A score of 0 to 69 means that the supplier has a “developmental” supplier rating. How would you evaluate each of the suppliers? Which supplier would you pick?

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Principles of Supply Chain Management A Balanced Approach

ISBN: 978-1285428314

4th edition

Authors: Joel D. Wisner, Keah Choon Tan, G. Keong Leong

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