Fernando Garza’s firm wishes to use factor rating tohelp select an outsourcing provider of logistics services. a) With weights from 1–5 (5 highest) and ratings 1–100 (100 high-est), use the following table to help Garza make his decision: RATING OF LOGISTICS PROVIDERS CRITERION WEIGHT OVERNIGHTSHIPPINGWORLDWIDEDELIVERY UNITEDFREIGHTQuality 5 90 80 75Delivery 3 70 85 70Cost 2 70 80 95b) Garza decides to increase the weights for quality, delivery, andcost to 10, 6, and 4, respectively. How does this change yourconclusions? Why?c) If Overnight Shipping’s ratings for each of the factors increaseby 10%, what are the new results?

Fernando Garza’s firm wishes to use factor rating tohelp select an outsourcing provider of logistics services. a) With weights from 1–5 (5 highest) and ratings 1–100 (100 high-est), use the following table to help Garza make his decision: RATING OF LOGISTICS PROVIDERS CRITERION WEIGHT OVERNIGHTSHIPPINGWORLDWIDEDELIVERY UNITEDFREIGHTQuality 5 90 80 75Delivery 3 70 85 70Cost 2 70 80 95b) Garza decides to increase the weights for quality, delivery, andcost to 10, 6, and 4, respectively. How does this change yourconclusions? Why?c) If Overnight Shipping’s ratings for each of the factors increaseby 10%, what are the new results?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter6: Category Strategy Development

Section: Chapter Questions

Problem 1DQ

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