A company is choosing an outside firm to provide its payroll services. It has chosen four comparative categories of interest: client reviews, financial condition, IT capabilities, and government stability. These categories have been assigned weights of 20%, 10%, 40%, and 30%, respectively. Two potential providers were scored on each of those factors (see table below) using a scale of 1-10, with a score of 1 meaning worst possible and 10 meaning best possible. Using the factor-rating method, which provider should be chosen? Provider A Provider B Client reviews 2 6 Financial condition 8 4 IT capabilities 5 8 Government stability 3 1

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.3SD: Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling...
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A company is choosing an outside firm to provide its payroll services. It has chosen four comparative categories of interest: client reviews, financial condition, IT capabilities, and government stability. These categories have been assigned weights of 20%, 10%, 40%, and 30%, respectively. Two potential providers were scored on each of those factors (see table below) using a scale of 1-10, with a score of 1 meaning worst possible and 10 meaning best possible. Using the factor-rating method, which provider should be chosen? Provider A Provider B Client reviews 2 6 Financial condition 8 4 IT capabilities 5 8 Government stability 3 1

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