SCM 303 Lecture Notes - Lecture 20: Delphi Method, Analytic Hierarchy Process, Laser Printing
9 Dec 2016
School
Department
Course
Professor
Document Summary
Price: total cost of ownership (tco, terms & conditions. End the practice of awarding business on the basis of a price tag. W. edwards deming, point 4: what is total cost, acquisition costs. Timing: lead time(s, meet/beat the target date(s, consequences of lateness. Mode: compatibility with receiving, risk of loss or damage. Now that we have the comparable costs, let"s break them out between acquisition, ownership, and post- ownership costs: You need to choose between two suppliers offering the exact same product, but with differing payment terms. Supplier b: . 35/unit, net 90: assume a 6. 5% annual cost of capital. 2 options: obtain info, eliminate supplier(s) Analysis techniques: weighted factor analysis (wfa) Performed by cross-functional team within the firm. Those who will be affected by the supplier selection decision. Then participants are allowed to modify their forecasts based on info. Process is repeated until consensus is reached; use mode: analytic hierarchy process (ahp)
