A Company Is About to Select a Vendor for the Outsourcing

question 150

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?
$$\begin{array} { | l | l | } \hline \text { Criterion } & \text { Weight } \\\hline \text { Engineering expertise } & 40 \\\hline \text { Financial and managerial strength } & 20 \\\hline \text { Integrity } & 15 \\\hline \text { Staff experience and qualifications } & 25 \\\hline\end{array}$$

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Definitions:

Millimeters

A metric unit of length equal to one-thousandth of a meter.

Inches

A unit of linear measure in the Imperial and US customary systems, equal to 1/12 of a foot or 2.54 centimeters.

Conversion Formula

A mathematical equation used to change one set of units to another.

Pounds

A unit of weight in the imperial system, used primarily in the United States, equivalent to 0.453592 kilograms.