Question: A manufacturing firm is planning to purchase a sub-assembly from one of the available...

90.2K

Verified Solution

Question

Accounting

image
image
Question: A manufacturing firm is planning to purchase a sub-assembly from one of the available suppliers in the market. In the buying center, four decision-makers from four different departments are involved: (i) finance, (ii) quality control, (iii) engineering design, and (iv) operations management. Due to the criticality of the subassembly, the opinions of decision-makers from "quality control" and "engineering design" are weighted double. There are 3 candidate suppliers in the market and the list of decision-making criteria is shown in the below figure. The importance of each criterion set for the decision-makers are as follows: For the decision-maker of the "finance": the importance of "economic" criteria is three-time and the importance of "ethical" criteria is two-time higher than others. For the decision-maker of the "quality control"; the importance of "economic" and "environmental" criteria is two-time higher than others. For the decision-maker of the "engineering design"; the importance of "economic", "environmental", and "social" criteria is two-time higher than others. For the decision-maker of the "operations management": the importance of all criteria is equal. The performance of each supplier with respect to the criterion list is shown in the below table (green cells The importance of each criterion set for the decision-makers are as follows: For the decision-maker of the "finance": the importance of "economic" criteria is three-time and the importance of "ethical" criteria is two-time higher than others. For the decision-maker of the "quality control": the importance of "economic" and "environmental" criteria is two-time higher than others. For the decision-maker of the "engineering design": the importance of "economic", "environmental", and "social" criteria is two-time higher than others. For the decision-maker of the "operations management": the importance of all criteria is equal. The performance of each supplier with respect to the criterion list is shown in the below table (green cells are maximization \& orange cells are minimization criteria). Use the heuristic approach of AHP to prioritize suppliers for this purchase

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students