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QUESTION

Claudia Pragram Technologies, Inc., has narrowed its choice of outsourcing provider to two firms located in different countries.

Claudia Pragram​ Technologies, Inc., has narrowed its choice of outsourcing provider to two firms located in different countries. Pragram wants to decide which one of the two countries is the better​ choice, based on​ risk-avoidance criteria. She has polled her executives and established four criteria. The resulting ratings for the two countries are presented in the table​ below, where 1 is a lower risk and 3 is a higher risk. Assume that the executives have determined four criteria​ weightings: Price, with a weight of​ 0.1; Nearness, with​ 0.6; Technology, with​ 0.2; and​ History, with 0.1.

​a) Using the weighted​ factor-rating method, which country would you​ select?

In the following table compute the weighted score for each candidate ​(enter your responses rounded to one decimal​ place).

Selection Criterion

​(Risk Factors)

Criteria 

Weight

England

Canada

Price of service from outsourcer

0.10

2

3

Nearness of facilities to client

0.60

3

1

Level of technology

0.20

1

3

History of successful outsourcing

0.10

1

2

Total Weighted​ Score:

nothing

nothing

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