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Shawn Bell, your manager wants you to pick the best supplier to source a key strategic component for your factory. This component is used in the computer programming for a local company’s best- selling product.
Tonga Inc. Mestro Inc. Premier Parts
Delivery 94% on time 98% on time 99% on time
Order cycle time 2 weeks 3 weeks 2 days
Price $138.00 $141.50 $152.00
Quality 15,000 ppm 10,000 ppm 1000 ppm
1. Create a weighted-point evaluation tool that includes the four categories given.
2. Assign weights to each category. Ensure that all four weights are not equal and they must sum to 1.0
3. Develop a scoring methodology (1-5) for each of the following four categories. Make sure that each category is clearly defined and that it will allow fair comparison between suppliers.
4. Based on your scoring, score each supplier in each category and record on your weighted point evaluation tool. Ensure that all suppliers have the same unit of measure. If not, you must do a conversion of units.
5. Calculate total points earned by each supplier and make a recommendation.
6. In addition, discuss two other factors that a buyer may consider when evaluating a potential supplier.
7. Under what situation would you want to multi-source a critical item?
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