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BUS 5116 - WK 4 - Written Assignment

This case study involves selecting the best supplier from three options based on price, quality, and delivery criteria. Supplier A has 90% price, 90% quality, and 95% delivery, despite a three-week transport time. Supplier B has the highest price and quality at 105% and 100%, but is experiencing financial issues. Supplier C has the lowest price at 85% but only 85% quality. The analysis concludes that Supplier A is the best choice overall, and this selection would remain even if only considering price and quality factors.

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Ezekiel Patrick
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173 views4 pages

BUS 5116 - WK 4 - Written Assignment

This case study involves selecting the best supplier from three options based on price, quality, and delivery criteria. Supplier A has 90% price, 90% quality, and 95% delivery, despite a three-week transport time. Supplier B has the highest price and quality at 105% and 100%, but is experiencing financial issues. Supplier C has the lowest price at 85% but only 85% quality. The analysis concludes that Supplier A is the best choice overall, and this selection would remain even if only considering price and quality factors.

Uploaded by

Ezekiel Patrick
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Supplier Selection Process

BUS 5116 written assignment (unit 4) By Ezekiel Patrick Inyang

MAY 5, 2021

By Ezekiel Inyang
Description of the Case

This is a case study and a procurement analysis involving 3 suppliers with different personas. An

outsourcing decision is to be made but a procurement analysis will have to be done first so the

best supplier is chosen. The decision of outsourcing is very important and key and also

considering that the key factors are price, quality and delivery it is important to analyze each

supplier and see which is fit for the supplier agreement. Every factor (price, quality and delivery)

will be considered with consideration of the “other” factor which has a description of the

transport time, different from the stated factors.

In this case study, I am the procurement analyst and I am required to answer the questions as

explained below:

What supplier would you select?

I would choose supplier A who has 90% price, 90% quality and 95% delivery.

What is your rationale for your election?

Firstly, Supplier A has a price of 90% and a quality of 90% with delivery of 95% despite the fact

that they will need 3 weeks to transport the product, it cannot be compared to Supplier B and C.

See reason below.

Supplier B would have been a great choice with 105% price and 100% quality with 100%

delivery which is higher than A and C, but they have financial Issues, we are not also sure of

their time for transporting the product and they may end up not delivering as they have been

confirmed to have financial Issues. The financial Issues can affect their delivery, affect their

transportation and even their quality. However, it won’t be right to realize that a supplier has
financial Issues and yet we still go into a supply agreement with them and take such unusual risk

that could be at the detriment of the company.

Supplier C would have been a better choice over A at least with a lower price of 85% but with a

low quality of 85%, it won’t be a match for supplier A. Quality is very important as they are the

winning factors in the market.

The 3 weeks transport time for supplier A is quite a long time but it is better to wait for 3 weeks

and get a good quality rather than get it cheap but with a terrible quality considering a market

where time and quality is key to customers.

What supplier would you select if your company’s factors changed to price and quality? Would

your election change?

If I were to consider price and quality, my election would still be supplier A. Supplier B has a

higher price (105%) and higher quality of 100% but their financial crises surely will stand in

their way of being the best option at this time, supplier C has a lesser price of 85% but their

quality is lesser than supplier A by 5% which is something to worry about especially when

supplying large quantity.

References

Abdul Zubar (2014). Analysis of supplier selection methods through conceptual module and

empirical study.

https://www.researchgate.net/publication/264837239_Analysis_of_supplier_selection_metho

ds_through_conceptual_module_and_empirical_study
James, T. (2011). Operations Strategy. Bookboon.com retrieved from

https://my.uopeople.edu/pluginfile.php/848133/mod_page/content/9/BUS5116James.pdf

Murphy K. (2020, January 16). The Supplier Selection Process. Retrieved from

https://www.purchasecontrol.com/blog/supplier-selection-process/#:~:text=

%E2%80%9CThe%20supplier%20selection%20process%20is,negotiating%20the%20best

%20possible%20deals.%E2%80%9D

Young J. (2019, July 5). Procurement. Retrieved from

https://www.investopedia.com/terms/p/procurement.asp

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