Question

The RBS Company currently buys their supplies from Supplier X which presently has a supplier score of 85.0. The RBS Company is now considering buying from Supplier Y. (A) Calculate Supplier Y’s supplier score using the data below. (B) Based on the supplier scores alone, should the RBS Company buy from Supplier X or Supplier Y? Performance Measure Supplier Y Rating Weight Quality 80 0.50 Delivery 90 0.10 Cost 85 0.30 Responsiveness 95 0.10

Answer 1

84

Supplier X

Step-by-step explanation:

The computation of supplier Y score is shown below:

Supplier Y Score is

= Supplies Y rating × weight

= 80 × 0.5 + 90 × 0.1 + 85 × 0.3 + 95 × 0.1

= 40 + 9 + 25.5 + 9.5

= 84

As we can see that the supplier score of X is 85 which is greater than the supplier score of Y

Hence, the supplier X should be selected by the RBS company