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The senior buyer at How Does Your Garden Grow Inc. needs to select a supplier for plastic patio chairs for a one-year contract. The chairs will be shipped to the compa- ny's distribution center in Toledo, Ohio. Three potential suppliers have been identified and the data were gathered. Develop a weighted-point model. Based on this model, which supplier should be selected? What other factors should be considered?
Company
ABC Molding
Perfection Plastics
I-Products
Annual sales
$ 9 million
$ 80 million
$ 30 million
Plant location
Erie, PA
Oakland, CA
St. Louis, MO
Purchase price per unit*
$9.50
$11.39
$11.25
Quality (defective parts per million)
300 ppm
60 ppm
160 ppm
Delivery (% on time)
99.5%
90%
94%
Transportation time
1 day
5 days
2 days
*Shipping is not included.
Supplier Assessment Scores
Category
Weight
Rating
Score
Quality performance and systems
50%
2
5
3
Management capabilities and attitudes*
10%
Delivery performance
20%
1
Purchase price
*All scores on a five-point scale with 1 5 poor, 5 5 excellent.
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