A Company Is About to Select a Vendor for the Outsourcing

question 2

Essay

A company is about to select a vendor for the outsourcing of all of its engineering, environmental, and CAD requirements. It has identified four criteria critical to the selection. These criteria, and their importance weights, appear below. Three firms, A, C, and E, have indicated that they are interested in this position. The company has scored each of the three candidates on these criteria, using a 1-10 scale, where 10 is best. Candidate A scored 7, 7, 7, and 5 on the four criteria. Candidate C scored 9, 4, 8, and 6. Candidate E scored 5, 10, 10, and 7. Which vendor has the highest composite score?

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Definitions:

Generally Accepted Accounting Principles

Generally Accepted Accounting Principles (GAAP) are a set of rules and standards used for financial reporting that are adopted by most U.S. companies for preparing their financial statements.

Managerial Information

Data and reports specifically prepared for managers within an organization to aid in decision-making and strategic planning.

Company's Operation

The day-to-day activities involved in running a business, which can include production, marketing, and management functions.

Internal Stakeholders

Individuals or groups within an organization who are directly affected by its activities, such as employees, managers, and owners.