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Rao Technologies, a California-based high-tech manufacturer, is considering outsourcing some of its electronics production. Four firms have responded to its request for bids, and CEO Mohan Rao has started to perform an analysis on the scores his OM team has entered in the table below.
RATINGS OF OUTSOPURCE PROVIDERS
FACTOR
WEIGHT
A
B
C
D
Labor
W
5
4
3
Quality procedures
30
2
1
Logistics system
Price
25
Trustworthiness
Technology in place
15
Management team
Weights are on a scale from 1 through 30, and the outsourcing provider scores are on a scale of 1 through 5. The weight for the labor factor is shown as a w because Rao's OM team cannot agree on a value for this weight. For what range of values of w, if any, is company C a recommended outsourcing provider, according to the factor-rating method?
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