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Pages:
1 page/β‰ˆ275 words
Sources:
2 Sources
Style:
APA
Subject:
Mathematics & Economics
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 4.32
Topic:

Weighted-Point Supplier Evaluation Tool using MS Excel

Essay Instructions:

Weighted-Point Supplier Evaluation Tool using MS Excel
Your manager has decided to reduce the number of suppliers for a critical subassembly from three to two. She has asked you to review the three current suppliers (A, B, and C) and to recommend which one to eliminate from the approved suppliers list. You confer on the ground rules and agree that a multiplier of three will be assigned for best performance in a category, two for second place, and one for last place.
You have been provided the following data:
Quality is the leading attribute to be considered and has been assigned a 45% weighting. The best record for quality has been achieved by Supplier C, followed by Supplier A, and Supplier B in last place.
Warranty length is the second most important attribute with a 30% weight. Warranties are three years for Supplier A, five years for Supplier B, and two years for Supplier C.
Cost is the last consideration with a relative weight of 25%. Subassemblies from Suppliers A and C each cost $7500 while those from Supplier B cost $6500. All values include shipping and delivery charges.
Create a simple MS Excel spreadsheet to enter the relevant data and to calculate the composite score for each of the three suppliers. Post your spreadsheet for the class and state your recommendation for which supplier to drop from the list.

Essay Sample Content Preview:

Weighted-Point Supplier Evaluation Tool Using MS EXCEL\
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The weights were given a weighting factor and as they are rated from 1 to 3; the supplier with the highest cumulative weighted scores is the best performing. The cost implications were $ 6,500 in B while in A and C, the costs were $ 7,500 meaning that B has a weighted score of 3 when considering cost. Hence, the weight allocated for the cost factor in A and C and are 1.5 each as the low cost is preferred as this represents the least cost expenditure. According to Johnson (2014), the nature of acquisition determines whether the evaluation process is informal or structured.
Considering different variables in assessing performance of the supplier is necessary to provide i...
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