Question

The Great Lakes Health Institute is planning to find a new vendor for exam room supplies. The purchasing manager is considering seven factors in his choice. The factor scores (based on a 10-point scale) and factor weights (in percentages) for five potential vendors (A-E) are given in the following table. Score (on a 10-point scale) Weight TABC Factor р | Social Responsibility 0.1 Ability to Converse in English 0.1 Political and Legal Issues Service Availability Communication Infrastructure Diversity 0.1 9 7 ISO Certification 0.2 Total 1.00 a. Which vendor should the purchasing manager select? ooo

Answer 1

Answer 1 Vendor B (The aggregate score of the vendor b is the highest.

Explanation-

Vendor A

Social responsibility = 0.1×6=0.6

Ability to converse in english= 0.1× 7= 0.7

Political and legal issues= 0.1×6= 0.6

Service availability =0.3×9= 0.27

Communication infrastructure= 0.1×6=0.6

Diversity= 0.1×9= 0.9

Iso certification = 0.2×5=0.10

Total = 0.6+0.7+0.6+0.27+0.6+0.9+0.10= 3.77

In the same way aggregate score of other vendors can be calculated.

Other vendors score

Vendor B- 4.84

Vendor C- 2.82

Vendor D- 2.81

Vendor E- 3.81

Answer 2 Vendor B ( Even if the communication infrastructure is not considered vendor B has the highest aggregate score)

Explanation- If communication is not an issue than new aggregates scores are

Vendor A = 3.77(aggregate score)- 0.6(communication infrastructure)=  3.17

Vendor B= 4.84- 0.9= 3.94

Vendor C= 2.82-0.3=2.52

Vendor D= 2.81- 0.4= 2.41

Vendor E= 3.81- 0.7= 3.11