As purchasing agent for Eynan Enterprises in Richmond, Virginia, you ask your buyer to provide you with a ranking of "excellent" (worth 4 points), "good" (3 points), "fair" (2 points), or "poor" (1 point) for a variety of characteristics for two potential vendors, Donna Inc. (D) and Kay Corp. (K). You suggest that "Products" total be weighted 0.4,
the "Company" total be weighted 0.2, and the "Service" and "Sales" totals each be weighted 0.2. The buyer has returned the following ranking. Which of the two vendors would you select?
|
Table 1: Company |
||||
|
Excellent (4) |
Good (3) |
Fair (2) |
Poor (1) |
|
|
Financial Strength |
nothing |
nothing |
KD |
|
|
Manufacturing Range |
nothing |
nothing |
K |
D |
|
Research Facilities |
K |
D |
||
|
Geographical Locations |
K |
nothing |
D |
nothing |
|
Management |
nothing |
KD |
nothing |
nothing |
|
Labor Relations |
nothing |
nothing |
nothing |
DK |
|
Trade Relations |
nothing |
nothing |
K |
D |
|
Table 2: Service |
||||
|
Excellent (4) |
Good (3) |
Fair (2) |
Poor (1) |
|
|
Deliveries on Time |
KD |
|||
|
Handling of Problems |
KD |
|||
|
Technical Assistance |
K |
D |
|
Table 3: Products |
||||
|
Excellent (4) |
Good (3) |
Fair (2) |
Poor (1) |
|
|
Quality |
K |
nothing |
D |
nothing |
|
Price |
nothing |
nothing |
D |
K |
|
Packing |
nothing |
nothing |
K |
D |
|
Table 4: Sales |
||||
|
Excellent (4) |
Good (3) |
Fair (2) |
Poor (1) |
|
|
Product knowledge |
D |
K |
||
|
Sales Calls |
nothing |
nothing |
nothing |
DK |
|
Sales Service |
K |
D |
You should choose vendor with a weighted score of
nothing. (Enter your response rounded to one decimal place.)
please show steps and answer
Table for Ratings of both vendors are shown below to compute the totals under each head, namely, company, service, sales and product
| Table 1: Company | Kay Corp | Donna Inc |
| Financial Strength | 1 | 1 |
| Manufacturing Range | 2 | 1 |
| Research Facilities | 4 | 2 |
| Geographical Locations | 4 | 2 |
| Management | 3 | 3 |
| Labor Relations | 1 | 1 |
| Trade Relations | 2 | 1 |
| COMPANY TOTAL | 17 | 11 |
| Table 2 : Service | ||
| Deliveries on Time | 3 | 3 |
| Handling of Problems | 3 | 3 |
| Technical Assistance | 3 | 2 |
| SERVICE TOTAL | 9 | 8 |
| Table 3 : Products | ||
| Quality | 4 | 2 |
| Price | 1 | 2 |
| Packaging | 2 | 1 |
| PRODUCTS TOTAL | 7 | 5 |
| TABLE 4 : SALES | ||
| Product knowledge | 1 | 2 |
| Sales Calls | 1 | 1 |
| Sales Service | 3 | 2 |
| SALES TOTAL | 5 | 5 |
Weighted score of Kay Corp = Weights of each factor * Total rating of factors
Weights for company, service, products, sales are 0.2,0.2,0.4,0.2 respectively.
Weighted score of Kay corp = 0.2*17 + 0.2*9 + 0.4*7 + 0.2*5
= 9
Weighted score of Donna Inc = 0.2*11 + 0.2*8 + 0.4*5 + 0.2*5 = 6.8
So, the weighted score of the buyer, Kay Corp is greater than that of Donna Inc. Hence, it is ideal to choose Kay Corp as the vendor for Eynan enterprises.
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