The senior buyer at How Does Your Garden Grow Inc. needs to select a supplier for plastic patio chairs for a one-year contract. The chairs will be shipped to the compa- ny's distribution center in Toledo, Ohio. Three potential suppliers have been identified and the data were gathered. Develop a weighted-point model. Based on this model, which supplier should be selected? What other factors should be considered?
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Company
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ABC Molding
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Perfection Plastics
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I-Products
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|
Annual sales
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$ 9 million
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$ 80 million
|
$ 30 million
|
|
Plant location
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Erie, PA
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Oakland, CA
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St. Louis, MO
|
|
Purchase price per unit*
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$9.50
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$11.39
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$11.25
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|
Quality (defective parts per million)
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300 ppm
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60 ppm
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160 ppm
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|
Delivery (% on time)
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99.5%
|
90%
|
94%
|
|
Transportation time
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1 day
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5 days
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2 days
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*Shipping is not included.
Supplier Assessment Scores
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|
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ABC Molding
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Perfection Plastics
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I-Products
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|
Category
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Weight
|
Rating
|
Score
|
Rating
|
Score
|
Rating
|
Score
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|
Quality performance and systems
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50%
|
2
|
|
5
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|
3
|
|
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Management capabilities and attitudes*
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10%
|
3
|
|
5
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|
3
|
|
|
Delivery performance
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20%
|
5
|
|
1
|
|
3
|
|
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Purchase price
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20%
|
5
|
|
2
|
|
2
|
|
*All scores on a five-point scale with 1 5 poor, 5 5 excellent.