A company is deciding between 2 foreign firms to provide its

A company is deciding between 2 foreign firms to provide its call center services. A factor-rating method is used. Factors are rated on a scale of 1-10, with 10 being the best score. (Total 10 Points)

A: If the factors are weighted equally (respective weights of .3333), which firm is preferred? (5 Points)

B: Suppose a consultant recommended that Factor 2 be twice as important as Factor 1, while Factor 3 should be four times as important as Factor 1. Which firm is best now using a weighted method? (Round your weights to the nearest four decimal places.) (5 Points)

Firm

Factor 1

Factor 2

Factor 3

A

10

7

4

B

5

8

6

Solution

a. when the factors are weighted equally then firm B is better. because all the factors are carrying near by importance and the gap is much less which can be erased or minimised.

b. even at these conditions also firm B is more important one. becaue as per the above saying factor 3 is most important one, so, firm B is having more units of factor 3. so, in this way also we can choose firm B only.