PRCH1012 Due Week 6 / Drop box Assignment #3 Vendor Analysis (Ch 7) (5%)

PRCH1012 Due Week 6 / Drop box Assignment #3 Vendor Analysis (Ch 7) (5%)

1.    Complete Week 5 Chapter 7 Worksheet in class before attempting this assignment.
2.    Shawn Bell, your manager wants you to pick the best supplier to source a key strategic component for your factory. This component is used in the computer programming for a local company’s best- selling product.

Tonga Inc.            Mestro Inc.            Premier Parts
Delivery        94% on time            98% on time            99% on time
Order cycle time    2 weeks            3 weeks            2 days
Price            $138.00            $141.50            $152.00
Quality            15,000 ppm            10,000 ppm            1000 ppm

1.    Create a weighted-point evaluation tool that includes the four categories given.
2.    Assign weights to each category. Ensure that all four weights are not equal and they must sum to 1.0
3.    Develop a scoring methodology (1-5) for each of the following four categories. Make sure that each category is clearly defined and that it will allow fair comparison between suppliers.
4.    Based on your scoring, score each supplier in each category and record on your weighted point evaluation tool. Ensure that all suppliers have the same unit of measure. If not, you must do a conversion of units.
5.    Calculate total points earned by each supplier and make a recommendation.
6.    In addition, discuss two other factors that a buyer may consider when evaluating a potential supplier.
7.    Under what situation would you want to multi-source a critical item?
The total weight of this assignment is 5%. Upload your assignment to Drop box #3 by Sunday at 11:59 pm in Week 6.

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