FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 company's distribution center in Toledo, Ohio. Three potential suppliers have been identified and the data
were gathered.
Company
Annual sales
Plant location
Purchase price per unit
Quality (defective parts per
million)
Delivery (% on time)
Transportation time
Supplier Assessment Scores
Category
Quality performance and systems
Management capabilities and attitudes
ABC Molding
$9 million
Erie, PA
$8.40
280 ppm
Delivery performance
Purchase price
Total Weighted Score
98.5%
1 day
*Shipping is not included.
pictureClick here for the Excel Data File
a. Complete the weighted-point model. (Round your answers to 1 decimal place.)
Weight
50%
10%
20%
20%
ABC Molding
Rating
3
3
Perfection Plastics
$73 million
Oakland, CA
$10.55
64 ppm
4
5
90%
5 days
Score
Perfection Plastics
Rating Score
5
4
2
2
1-Products
$34 million
St. Louis, MO
$11.45
123 ppm
95%
2 days
1-Products
Rating
3
1
3
2
Score
Check my work
expand button
Transcribed Image Text: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 company's distribution center in Toledo, Ohio. Three potential suppliers have been identified and the data were gathered. Company Annual sales Plant location Purchase price per unit Quality (defective parts per million) Delivery (% on time) Transportation time Supplier Assessment Scores Category Quality performance and systems Management capabilities and attitudes ABC Molding $9 million Erie, PA $8.40 280 ppm Delivery performance Purchase price Total Weighted Score 98.5% 1 day *Shipping is not included. pictureClick here for the Excel Data File a. Complete the weighted-point model. (Round your answers to 1 decimal place.) Weight 50% 10% 20% 20% ABC Molding Rating 3 3 Perfection Plastics $73 million Oakland, CA $10.55 64 ppm 4 5 90% 5 days Score Perfection Plastics Rating Score 5 4 2 2 1-Products $34 million St. Louis, MO $11.45 123 ppm 95% 2 days 1-Products Rating 3 1 3 2 Score Check my work
a. Complete the weighted-point model. (Round your answers to 1 decimal place.)
Supplier Assessment Scores
Category
Quality performance and systems
Management capabilities and attitudes
Delivery performance
Purchase price
Total Weighted Score
Weight
50%
10%
20%
20%
ABC Molding
O Perfection Plastics
O I-Products
ABC Molding
Rating Score
3
3
4
5
All scores on a five-point scale with 1 = poor, 5= excellent.
b. Based on this model, which supplier should be selected?
Perfection Plastics
Rating Score Rating Score
5
422
www
I-Products
3
1
3
2
expand button
Transcribed Image Text:a. Complete the weighted-point model. (Round your answers to 1 decimal place.) Supplier Assessment Scores Category Quality performance and systems Management capabilities and attitudes Delivery performance Purchase price Total Weighted Score Weight 50% 10% 20% 20% ABC Molding O Perfection Plastics O I-Products ABC Molding Rating Score 3 3 4 5 All scores on a five-point scale with 1 = poor, 5= excellent. b. Based on this model, which supplier should be selected? Perfection Plastics Rating Score Rating Score 5 422 www I-Products 3 1 3 2
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