Question The Bennet Company purchase one of its essential raw

26 May Question The Bennet Company purchase one of its essential raw

Question
The Bennet Company purchase one of its essential raw materials from three suppliers. Bennet’s current policy is to distribute purchase equally among the three. The owner’s son, Benjamin Bennet, just graduated from a business college. He proposes that these three suppliers be rated (high numbers mean a good performance) on six performance criteria weighted as shown below. A total scored hurdle of 0.60 is proposed to screen suppliers. Purchasing policy would be revised to order raw materials from suppliers with performance scores greater than the total score hurdle, in proportion to their performance rating score.

A. What supplier’s survived the hurdle?

B. Under the younger Bennet’s proposed policy, what proportion of orders would each supplier receive?

C. What advantages does the proposed policy have over the current policy?

Rating

Performance Criterion

Weight

Supplier A

Supplier B

Supplier C

Price

0.2

0.6

0.5

0.9

Quality

0.2

0.6

0.4

0.8

Delivery

0.3

0.6

0.3

0.8

Production Facilities

0.1

0.5

0.9

0.6

Environmental Protection

0.1

0.7

0.8

0.6

Financial Position

0.1

0.9

0.9

0.7

1

Weighted Total

0.63

0.53

0.77

Weighted Average

0.63

0.53

0.77

Question 4

Beagle Clothiers uses a weighted score for evaluation and selection of its suppliers of trendy
fashion garments.
Each supplier is rated on a 10-point scale (10 – higherst) for four different criteria: price, quality, delivery, and flexibility (to accommodate changes in quantity & timing). Because of volitility of the business in which Beagle operates, flexibility is given twice the weight of each of the other three criteria, which are equally weighted. The table shows the scores for three potential suppliers for the four performance criteria. Based on the highest weighted
score, which supplier should be selected?

Criteria Supplier Supplier Supplier
A B C
Price 8 6 6
Quality 9 7 7
Delivery 7 9 6
Flexibility 5 8 9

Question 5

ingman distributing company is expanding its supply chain to include a new distribution hub in south bend. A key decision involves the number of trucks for the facility. The particular model of truck wingman is considering can be used 8,000 miles a month and will cost $1,500 a month in capital costs. In addition, each mile a truck is used costs $0.90 for maintenance. A local truck rental firm will rent trucks at a cost of $0.90 per mile, which includes the maintenance costs for those miles. Given the distribution of likely requirements for trucks, management has come up with three alternatives to consider as shown in the table.

Monthly requirements (miles) 40,000 80,000 1 20,000
Probability 0.30 0.40 0.30
Fleet size (trucks) 5 1 0 1 5

Which fleet size will yield the lowest expected monthly costs for Wingman?