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California-based high-tech manufacturer, is considering outsourcing

23 / 01 / 2019 Others

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Question

Price Technologies, a California-based high-tech manufacturer, is considering outsourcing some of its electronics production. Three firms have responded to its request for bids, and CEO Willard Price has started to perform an analysis on the scores his OM team has entered in the table below.
Criterion


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Weight

Supplier 1 (rating)

Supplier 2 (rating)

Supplier 3 (Rating)

Labor

0.2

4

4

5

Logistics system

0.3

3

4

3

Price

0.2

4

3

3

Management

0.3

5

4

3

 

 

The outsourcing provider scores are on a scale of 1 through 5, with 5 being the most satisfactory.

Which supplier should Mr. Price choose? Please provide the overall ratings of each supplier for full credit. For each overall rating, please provide at least one step of calculation. (14 points)

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