A weighted scorecard is used to compare three suppliers for a product. Determine the total weighted scores for the suppliers and which supplier would be preferred. Use a 10-point scale. Note that excellent

Question Completion:

Note that excellent - 10, good- 8, fair-6, poor- 4.

Performance Criteria     Weight   Ideal    Supplier A   Supplier B  Supplier C

On-time performance     30%     100%         92%          98%          96%

Pricing                              25%     $25         $28           $26           25%

Customer service           25%     Excellent Excellent   Good          Fair

Meets quality check        10%     100%          96%         100%         100%

Order change request    10%     Excellent   Fair          Good          Poor

a) Determination of the total Weighted Scorecard:

Performance Criteria        Supplier A      Supplier B     Supplier C

On-time performance         27.6%             29.4%             28.8%

Pricing                                  22.3%             24.0%             25.0%

Customer service               25.0%             20.0%             15.0%

Meets quality check             9.6%              10.0%             10.0%

Order change request         6.0%               8.0%               4.0%

Total score                         90.5%              91.4%             82.8%

b) Supplier B would be preferred.  It has got the highest weighted score.

Explanation:

a) Data and Calculations:

We shall calculate the Supplier A weight as an example:

Performance Criteria     Weight   Ideal    Supplier A  Weighted Calculations

On-time performance     30%     100%         92%       27.6% (92% * 30%)

Pricing                              25%     $25         $28        22.3% ($25/$28 * 25%)

Customer service           25%     Excellent Excellent 25% (100% * 25%)

Meets quality check        10%     100%          96%       9.6% (96% * 10%)

Order change request    10%     Excellent   Fair         6% (6/10 * 10%)

c, theres a double tax on the business earnings