An Operations Manager Is Performing a Factor-Rating Analysis to Help

question 25

Multiple Choice

An operations manager is performing a factor-rating analysis to help him choose an outsourcing provider.He is focusing on two factors: A and B,using a weight of 75% for factor A and 25% for factor B.He has scored five different potential providers on both factors,using a scale of 1-5,with 1 representing the BEST score.Based on the scores provided in the table below,which provider should be chosen?

• A)Alpha
• B)Beta
• C)Gamma
• D)Phi
• E)Omega

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Definitions:

Full Settlement

A financial arrangement where a debtor pays a lump sum that is less than the total amount owed to fully settle the outstanding debt.

Perpetual Inventory System

An inventory accounting system that records purchases and sales of merchandise immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Periodic Inventory System

A periodic inventory system is an accounting method where inventory levels and cost of goods sold are determined at the end of an accounting period, not after each sale or purchase.

Freight Charges

Costs associated with transporting goods from one location to another, paid by the shipper or the receiver, depending on the terms of sale.