Question

Your company has used competitive bidding to select a supplier for janitorial services. Three suppliers returned acceptable bids within the allotted time frame.
Category Weight Supplier A Rating Supplier B Rating Supplier C Rating
Quality systems 40% 2 3 2
Financial stability 29% 2 2 3
Management experience 20% 4 2 3
Price 11% 1 4 4
All scores on a five-point scale with 1poor, 5 excellent.
a. Calculate the total weighted score for each supplier. (Round your answers to 2 decimal places.)
Total Weighted Score
Supplier A
Supplier B
Supplier C
b. Based on these ratings from the supplier assessment, which supplier appears to be the best?
Supplier A
Supplier B
Supplier C

Answer 1

Answer:

Competitive Bidding based on Weighted Score

a. Calculation of the total weighted score for each supplier:

Supplier A :

Quality systems 40% x 2/5   = 16%

Financial stability 29% x 2/5 = 11.6%

Management experience 20% x 4/5 = 16%

Price 11% 1/5 = 2.2%

Total weighted score = 45.8%

Supplier B :

Quality systems 40% x 3/5 = 24%

Financial stability 29% x 2/5 = 11.6%

Management experience 20% x 2/5 = 8%

Price 11% x 4/5 = 8.8%

Total weighted score = 52.4%

Supplier C

Quality systems 40% x 2 /5 = 16%

Financial stability 29% x 3 /5 = 17.4%

Management experience 20% x 3 /5 = 12%

Price 11% x 4/5 = 8.8%

Total weighted score = 54.2%

b. Best Supplier:

Supplier C

Explanation:

a) Data and Calculations:

Category                          Weight    Supplier A   Supplier B   Supplier C

                                                          Ranking        Ranking      Ranking

Quality systems                 40%            2                 3                   2

Financial stability               29%            2                 2                   3

Management experience 20%            4                 2                   3

Price                                    11%              1                 4                   4