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Intro- Supply Chain Management
Problem : Supplier Selection
Your sourcing department has received bids from three suppliers shown below.
PERFORMANCE DIMENSION
IMPORTANCE
Supplier 1
Supplier 2
Supplier 3
On Time Delivery (% on time)
0.30
99%
97%
91%
Financial Stability (rating)
0.20
AA
A
BBB
Cost ($/unit)
0.50
$11.25/unit
$10.80/unit
$9.80/unit
1- Score each supplier's bid using the following scale.
On Time Delivery
Financial Stability
Cost
Range
Score
Rating
<90%
1
Lower than BBB
>$12.00 per unit
91%-93%
2
$10.50-$11.99 per unit
94%-96%
3
$10.00-$10.49 per unit
97%-98%
4
$9.50-9.99 per unit
99%+
5
AAA
<$9.50 per unit
2- Calculate the weighted average score for each supplier.
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