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. A: If the factors are weighted equally (respective weights of 3333), which firm is preferred? B: Suppose a consultant recommended that Factor 2 be twice as important as Factor 1, while F be four times as important as Factor 1. Which firm is best now using a weighted method? Round your actor 3 should weights to the nearest four decimal places.) Factor 2 Factor 3 Factor 1 10

Solution

A) As all the weights are equal.

Weighted score For Firm A = (10 + 7 + 4)/3 = 7

Weighted score For Firm B = (5+8+6)/3 = 6.3333

Firm A is preferred

B) Factor 2 being twice important and Factor 3 being four importance as Factor 1.

Weighted score For Firm A = (10 + 7*2 + 4*4)/7 = 5.7143

Weighted score For Firm B = (5+8*2+6*4)/7 = 6.4286

Firm B is preferred