Problem S11.7 Price Technologies, a California-based high-tech manufacturer, is considering outsourcing some of its electronics production. Four firms.

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Presentation transcript:

Problem S11.7 Price 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 Willard Price has started to perform an analysis on the scores his OM team has entered in the table below Factor Weight A B C D Labor W 5 4 3 Quality Procedures 30 2 1 Logistics Systems Price 25 Trustworthiness Technology in Place 15 Management team

Problem S11.7 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?

Problem S11.7