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Vendor Rating

The document provides vendor performance data from two previous construction projects. It recommends selecting a vendor for an upcoming project based on a rating system that considers delivery performance (50% weight), quality performance (25% weight), and price performance (25% weight). Vendor A has the highest overall performance rating of 93.77% based on these factors, followed by Vendor B at 93.71% and Vendor D at 93.37%. Therefore, the recommendation is to select Vendor A if possible, or Vendor B if not.

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Tulasi sharma
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364 views6 pages

Vendor Rating

The document provides vendor performance data from two previous construction projects. It recommends selecting a vendor for an upcoming project based on a rating system that considers delivery performance (50% weight), quality performance (25% weight), and price performance (25% weight). Vendor A has the highest overall performance rating of 93.77% based on these factors, followed by Vendor B at 93.71% and Vendor D at 93.37%. Therefore, the recommendation is to select Vendor A if possible, or Vendor B if not.

Uploaded by

Tulasi sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLS, PDF, TXT or read online on Scribd
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Example:Table below gives the summary of records maintained by A construction Company of supplies of

cement in last 2 projects. Supply of cement is taken as a critical and most important activity of the company
for its forthcoming" ABC Hydropower Project" due to start early next year. The company intends to select the
vendor through vendor rating giving 50% weightage to delivery performance and 25% weightage to each of
the quality performance and price performance. Please recommend to select a vendor from among the 5 who
supplied in earlier 2 projects.

Vendor Total no of No of lots Total no of Delivery Price offered


lots supplied accepted scheduled made in per ton
delivery time

A 78 66 21 20 10,000.00
B 47 43 16 16 12,000.00
C 68 66 19 17 15,000.00
D 94 88 26 24 10,500.00
E 59 52 18 16 13,000.00
Solution
Vendor Quality Performance Delivery Price Performance Overall Performance Rank
(25%) Performance(50%) (25%)
(No of lots accepted/ (Lowest price offered
Total no of lots (Delivery made in among the vendor/
supplied)* 100 time/Total no of Price offerd) *100
scheduled delivery)*100 (50% of DP+ 25% of QP + 25% of PP)
A 84.62 95.24 100.00 93.77 I
B 91.49 100.00 83.33 93.71 II
C 97.06 89.47 66.67 85.67 V
D 93.62 92.31 95.24 93.37 III
E 88.14 88.89 76.92 85.71 IV

From above calculation, we found that all vendors deseve more than 85% overall performance
vendor A deserve first rank
vendor B deserve second rank
vendor D deserve third rank
vendor E deserve forth rank
vendor C deserve fifth rank
So we can choose
Vendors Accordingly If possible Vendor A if not Vendor B
Example: The following are the top class construction company, based on the following factors quality 60%, price 20%, and
delivery 20% more taken into consideration for evaluation purpose. Which company will your rate and why on the
following given indicators:

Indicators Companies

A B C

Quantity supplied 10 20 15
Quantity accepted 8 18 10
Price/unit (Rs) 2500 6000 3000
Delay in delivery 20% 10% 8%
Solution
Company Quality Performance Delivery Price Performance Overall Performance Rank
(60%) Performance(20%) (20%)
(No of lots accepted/ (Lowest price offered
Total no of lots (Delivery made in time) among the vendor/ (60% of QP+ 20% of DP + 20% of PP)
supplied)* 100 Price offerd) *100
A 80.00 80.00 100.00 84.00 I
B 90.00 90.00 41.67 80.33 II
C 66.67 92.00 83.33 75.07 III

From above calculation, we found that:


Company A deserve first rank (84% overall performance)
Company B deserve second rank (80.33% overall performance)
Company C deserve third rank (75.07% overall performance)

So we can choose
Company Accordingly If possible Company A if not Company B
0.416666667

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