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
Weighted Total 0.63 0.53 0.77
Weighted Average 0.63 0.53 0.77