Question

Blaze Manufacturing Company is using a weighted criteria evaluation system to certify suppliers.  Oronto Enterprise, Mintco Company and Vertona Ltd. supply Blaze with components for their manufacturing process. Blaze Mfg. has scored Oronto, Mintco and Vertona on a scale of 0 to 100 (see table below).

Performance Criteria	Weight	Oronto (Score 0-100)	Mintco (Score 0-100)	Vertona (Score 0-100)
Technology	25%	85	80	60
Quality	20%	90	92	72
Environmental Responsibility	15%	84	85	70
Price	15%	77	80	65
On-time deliveries	10%	86	83	80
Flexibility	5%	84	85	90
Customer Service	10%	83	83	70

a) Based on the weights used in the evaluation system, what is Blaze Manufacturing’s purchasing objective?  [2 points]

b) If Blaze Mfg. classifies their vendors based on the following criteria:

i. Unacceptable (score less than 50)

ii. Conditional (score between 50 and 70)

iii. Certified (score between 70 and 90) and

iv. Preferred (score greater than 90)

how well are their suppliers Oronto, Mintco and Vertona doing?  Show all calculations. [4 points]

	A.	a)  The company's purchasing objective is to place the highest value on technology and quality. b)  Oronto classified as Certified, with a score of 84.00,   Mintco classified as Certified, with a score of 74.00 and   Vertona classified as Conditional, with a score of 65.25
	B.	a)  The company's purchasing objective is to place the highest value on technology and quality. b)  Oronto classified as Certified, with a score of 84.50,   Mintco classified as Certified, with a score of 84.00 and   Vertona classified as Conditional, with a score of 69.15
	C.	a)  The company's purchasing objective is to place the highest value on flexibility. b)  Oronto classified as Certified, with a score of 84.50,   Mintco classified as Certified, with a score of 84.00 and   Vertona classified as Conditional, with a score of 69.15
	D.	a)  The company's purchasing objective is to place the highest value on flexibility. b)  Oronto classified as Certified, with a score of 80.50,   Mintco classified as Certified, with a score of 81.25 and   Vertona classified as Conditional, with a score of 68.75

Answer 1

Correct Option is Option B

The company's objective to identify suppliers who have high score in Technology and Quality. The weights assigned denotes the same. Technology has 25% weightage whereas Quality has 20%. which are the highest weightages among all the parameters. Higher the weightage in decison making, higher the priority.

Refer the calculation below

	Weight	Oronto Score	Oronto Weighted Score (Weight * Score)	Mintco Score	Mintco Weighted Score (Weight * Score)	Vertona Score	Vertona Weighted Score (Weight * Score)
Technology	25%	85	21.25	80	20	60	15
Quality	20%	90	18	92	18.4	72	14.4
Environmental Responsibility	15%	84	12.6	85	12.75	70	10.5
Price	15%	77	11.55	80	12	65	9.75
On-time deliveries	10%	86	8.6	83	8.3	80	8
Flexibility	5%	84	4.2	85	4.25	90	4.5
Customer Service	10%	83	8.3	83	8.3	70	7
Overall Weighted Score (Sum of weighted Score Column)	84.5		84		69.15

Oronto and Mintco has score between 70 and 90 (84.5 and 84). Hence are classified as Certified

Vertona has a score of 69.15, hence classified under the Conditional