Question

A consulting agency working to implement infrastructure improvements for a customer needs to evaluate potential cement suppliers. A project team was formed that identified the following priorities for this supplier selection decision. Then available suppliers received a Request for Quote (RFQ) to bid on the project. Each supplier was further researched and rated for each of the factors prioritized by the project team. The team built the following decision matrix: Factors Weight Acme Cemex LafargeHolcim Cement 8 6 2 Lead- time 9 5 7 35 Price 3 7 5 Water & 25 Coarse Ratio 6 8 Cure Time .15 LO 20

Answer 1

Factor	Weights	Acme cement	Cemex	LafargeHolcim
Lead-time	0.2	2	6	8
Price	0.35	9	5	7
Water & coarse Ratio	0.25	3	7	5
Cure Time	0.15	5	8	6
Weighted Averge cost		5.05	5.9	6.2
Weighted Average cost = sum(weight*factor cost) FOR EACH FACTOR
For eg for Acme cement Weighted average cost = 0.20*2+0.35*9+0.25*3+0.15*5 = 5.05
From the above table the Weighted cost is least for Acme Cememt at 5.05. Therefore select Acme Cement. option A is correct