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Compton Electronics manufactures laptops for major computer manufacturers. A key element of the laptop is the keyboard. Compton has identified three potential suppliers for the keyboard, each located in a different part of the world. Important cost considerations are the price per keyboard, freight costs, inventory costs, and contract administrative costs. The annual requirements for the keyboard are 3 0 0 , 0 0 0 units. Assume Compton has 2 5 0 business days a year. The management of Compton Electronics has done a total cost analysis for three international suppliers of keyboards ( see Example 1 ) . Compton also considers on - time delivery, consistent quality, and environmental stewardship in its selection process. Each criterion is given a weight ( total of 1 0 0 points ) , and each supplier is given a score ( 1 = poor, 1 0 = excellent ) on each criterion. Based on a scoring method and your analysis, which supplier should Compton use? ( show your work in the spreadsheet ) give solution step by step with each step explanation and final conclusionAnnual Freight Costs ‘Shipping Quantity (Units/Shipment) Supplier 10000 20000 30000 Belfast 380000 260000 237000 HongKong 615000 547000 470000 Shreveport 285000 240000 200000 Keyboard Costs and Shipping Lead Times Supplier Price/ Unit Annual Inventory Carrying Cost/ Unit _ Shipping Lead Time (Days) Administrative Costs Belfast 100 20 15 180000 Hong Kong % 192 2 300000 Shreveport 9% 198 5 150000 Total Annual Costs for the Keyboard Suppliers Shipping Quantity Supplier 10000 20000 30000 Belfast 31020000 31000000 31077000 HongKong 30387000 30415000 30434000 Shreveport 30352800 30406800 30465800 score Criterion Weight Belfast HongKong Shreveport Total Cost 2% 5 8 9 On-Time Delivery EY) [) 6 7 Consistent Quality 0 8 9 6 Environment 15 9 6 8 Business Days per Year 250 Keyboard Requirement 300000

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Compton Electronics manufactures laptops for major computer manufacturers. A key element of the laptop is the keyboard. Compton has identified three potential suppliers for the keyboard, each located in a different part of the world. Important cost considerations are the price per keyboard, freight costs, inventory costs, and contract administrative costs. The annual requirements for the keyboard are 3 0 0 , 0 0 0 units. Assume Compton has 2 5 0 business days a year. The management of Compton Electronics has done a total cost analysis for three international suppliers of keyboards ( see Example 1 ) . Compton also considers on - time delivery, consistent quality, and environmental stewardship in its selection process. Each criterion is given a weight ( total of 1 0 0 points ) , and each supplier is given a score ( 1 = poor, 1 0 = excellent ) on each criterion. Based on a scoring method and your analysis, which supplier should Compton use? ( show your work in the spreadsheet ) give solution step by step with each step explanation and final conclusionUploaded ImageAnnual Freight Costs ‘Shipping Quantity (Units/Shipment) Supplier 10000 20000 30000 Belfast 380000 260000 237000 HongKong 615000 547000 470000 Shreveport 285000 240000 200000 Keyboard Costs and Shipping Lead Times Supplier Price/ Unit Annual Inventory Carrying Cost/ Unit _ Shipping Lead Time (Days) Administrative Costs Belfast 100 20 15 180000 Hong Kong % 192 2 300000 Shreveport 9% 198 5 150000 Total Annual Costs for the Keyboard Suppliers Shipping Quantity Supplier 10000 20000 30000 Belfast 31020000 31000000 31077000 HongKong 30387000 30415000 30434000 Shreveport 30352800 30406800 30465800 score Criterion Weight Belfast HongKong Shreveport Total Cost 2% 5 8 9 On-Time Delivery EY) [) 6 7 Consistent Quality 0 8 9 6 Environment 15 9 6 8 Business Days per Year 250 Keyboard Requirement 300000

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Asked by: Priyanshu Yadav
Created at: 2025-09-29 08:59:19

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# Supplier Selection for Compton Electronics: Step-by-Step Analysis ## Step 1: Understand the Criteria and Weights Compton Electronics assesses suppliers based on four criteria: - **Total Cost** (25 points) - **On-Time Delivery** (30 points) - **Consistent Quality** (30 points) - **Environment** (15 points) The total possible score for each supplier is 100. --- ## Step 2: Supplier Scores for Each Criterion | Criterion | Weight | Belfast | Hong Kong | Shreveport | |-------------------|--------|---------|-----------|------------| | Total Cost | 25 | 5 | 8 | 9 | | On-Time Delivery | 30 | 9 | 6 | 7 | | Consistent Quality| 30 | 8 | 6 | 9 | | Environment | 15 | 9 | 6 | 8 | --- ## Step 3: Calculate Weighted Scores Multiply each supplier's score by the criterion weight and sum the results. ### **Belfast** - Total Cost: 5 × 25 = **125** - On-Time Delivery: 9 × 30 = **270** - Consistent Quality: 8 × 30 = **240** - Environment: 9 × 15 = **135** - **Total Score = 125 + 270 + 240 + 135 = 770** ### **Hong Kong** - Total Cost: 8 × 25 = **200** - On-Time Delivery: 6 × 30 = **180** - Consistent Quality: 6 × 30 = **180** - Environment: 6 × 15 = **90** - **Total Score = 200 + 180 + 180 + 90 = 650** ### **Shreveport** - Total Cost: 9 × 25 = **225** - On-Time Delivery: 7 × 30 = **210** - Consistent Quality: 9 × 30 = **270** - Environment: 8 × 15 = **120** - **Total Score = 225 + 210 + 270 + 120 = 825** --- ## Step 4: Compile Results | Supplier | Total Weighted Score | |------------|---------------------| | Belfast | 770 | | Hong Kong | 650 | | Shreveport | 825 | --- ## Step 5: Conclusion **Shreveport** has the highest total weighted score (**825**), indicating it is the best overall choice considering total cost, on-time delivery, consistent quality, and environmental stewardship. --- ### **Final Recommendation** > **Compton Electronics should select Shreveport as their keyboard supplier, as it scores highest across the weighted criteria.** --- ### **Explanation** - Shreveport is strongest in Total Cost and Consistent Quality. - It also scores well in On-Time Delivery and Environment. - The scoring method ensures that all important factors are considered, not just cost. --- Let me know if you need this analysis in Excel format or a more detailed breakdown!

Question:

add explanation after each step and final conclusion

This is AI generated Response.
Asked by: Priyanshu Yadav
Created at: 2025-09-29 09:00:17

Final Answer:

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# Supplier Selection for Compton Electronics: Step-by-Step Analysis ## Step 1: Understand the Criteria and Weights Compton Electronics evaluates suppliers based on four criteria that are vital for their operations: - **Total Cost** (25 points): Directly affects overall expenditure. - **On-Time Delivery** (30 points): Critical for maintaining production schedules. - **Consistent Quality** (30 points): Ensures product reliability and customer satisfaction. - **Environment** (15 points): Reflects corporate social responsibility and sustainability. The total possible score for each supplier is 100. Understanding the weight of each criterion is essential for fair comparison. --- ## Step 2: Supplier Scores for Each Criterion ### Supplier Score Table | Criterion | Weight | Belfast | Hong Kong | Shreveport | |-------------------|--------|---------|-----------|------------| | Total Cost | 25 | 5 | 8 | 9 | | On-Time Delivery | 30 | 9 | 6 | 7 | | Consistent Quality| 30 | 8 | 6 | 9 | | Environment | 15 | 9 | 6 | 8 | ### Explanation This table summarizes the scores given to each supplier across the defined criteria. Each score reflects the supplier's performance in that area, with higher scores indicating better performance. --- ## Step 3: Calculate Weighted Scores To evaluate each supplier, we calculate their weighted scores by multiplying the score by the corresponding criterion weight. ### **Belfast** - **Total Cost**: \(5 \times 25 = 125\) - **On-Time Delivery**: \(9 \times 30 = 270\) - **Consistent Quality**: \(8 \times 30 = 240\) - **Environment**: \(9 \times 15 = 135\) - **Total Score**: \(125 + 270 + 240 + 135 = 770\) ### **Hong Kong** - **Total Cost**: \(8 \times 25 = 200\) - **On-Time Delivery**: \(6 \times 30 = 180\) - **Consistent Quality**: \(6 \times 30 = 180\) - **Environment**: \(6 \times 15 = 90\) - **Total Score**: \(200 + 180 + 180 + 90 = 650\) ### **Shreveport** - **Total Cost**: \(9 \times 25 = 225\) - **On-Time Delivery**: \(7 \times 30 = 210\) - **Consistent Quality**: \(9 \times 30 = 270\) - **Environment**: \(8 \times 15 = 120\) - **Total Score**: \(225 + 210 + 270 + 120 = 825\) ### Explanation Each supplier's total score reflects their performance across all criteria, weighted by the importance of each criterion. This method ensures a comprehensive evaluation. --- ## Step 4: Compile Results ### Total Weighted Scores Table | Supplier | Total Weighted Score | |------------|---------------------| | Belfast | 770 | | Hong Kong | 650 | | Shreveport | 825 | ### Explanation This table summarizes the total weighted scores for each supplier, making it easy to identify which supplier performed best overall based on the weighted criteria. --- ## Step 5: Conclusion **Shreveport** has the highest total weighted score (**825**), indicating it is the best overall choice considering total cost, on-time delivery, consistent quality, and environmental stewardship. ### Final Recommendation > **Compton Electronics should select Shreveport as their keyboard supplier, as it scores highest across the weighted criteria.** --- ### Explanation of Conclusion - **Shreveport** excels in Total Cost and Consistent Quality, which are critical for production and customer satisfaction. - It also maintains a good score in On-Time Delivery and Environment, making it a well-rounded choice. - The scoring method ensures that Compton Electronics makes a decision based on a balanced evaluation of all important factors, rather than focusing solely on cost. This structured approach helps in making an informed decision that aligns with the company's operational goals and values.

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