The Dominguez Hills Manufacturing Company is performing an annual evaluation of one of its suppliers, the Carson Company. Bo, purchasing manager of the Dominguez Hills Manufacturing Company, has collected the following information on the Carson Company.
PERFORMANCE CRITERIA SCORE WEIGHT
Continuous improvement 90 0.10
Cost 85 0.20
Delivery 80 0.15
Quality 95 0.25
Responsive 90 0.15
Sustainability 80 0.05
Technology 90 0.10
Total score
A score based on a scale of 0 (unsatisfactory) to 100 (excellent) has been assigned for each performance category considered critical in assessing the supplier. A weight is assigned to each of the performance criteria based on its relative importance. Vendors are classified based on their overall scores as follows:
Unacceptable (less than 50)—supplier dropped from further business
Conditional (between 50 and 70)—supplier needs development work to improve performance but may be dropped if performance continues to lag
Certified (between 70 and 90)—supplier meets intended purpose or performance
Preferred (greater than 90)—supplier will be considered for involvement in new product development and opportunities for more business
What is the Carson Company’s score and how would you evaluate their performance as a supplier?
