Question

One of the advantages of the Weighted Point Evaluation Method is that it: A. Keeps the number of suppliers in a Supply Chain low B. Allows supplier performance to be tracked over time C. Results in lower purchasing costs than other methods D. Improves the purchasing manager's ability to forecast demand E. Allows purchasing managers to visualize the various categories they are trying to manage

Answer 1

Answer: B. Allows supplier performance to be tracked over time

Explanation:

The Weighted Point Evaluation Method is used to select the best supplier to provide for the company's type of need.

It works by assigning weights to the different characteristics of the product which enables one to add high weights to more preferred characteristics. The products offered by various suppliers are then given weights based on these characteristics/categories as well and then a weighted average is computed.

The highest supplier can then be chose. One advantage of this is that it allows for Supplier performance to be tracked overtime as those performances are used in this method to decide the optimal supplier.