To determine which supplier should be awarded the contract, we need to calculate the overall score for each supplier by combining the quality score and the cost score, with each weighted at 50%.
* Calculate the cost score:
* Supplier 1: $100,000 (100 points)
* Supplier 2: $104,000 (100,000/104,000 = 96.15, so 100 - 3.85 96 points)
* Supplier 3: $105,000 (100,000/105,000 = 95.24, so 100 - 4.76 95 points)
* Supplier 4: $110,000 (100,000/110,000 = 90.91, so 100 - 9.09 91 points)
* Calculate the overall score:
* Supplier 1: (90 * 0.5) + (100 * 0.5) = 95
* Supplier 2: (90 * 0.5) + (96 * 0.5) = 93
* Supplier 3: (100 * 0.5) + (95 * 0.5) = 97.5
* Supplier 4: (100 * 0.5) + (91 * 0.5) = 95.5
Supplier 3 has the highest overall score (97.5), so Supplier 3 should be awarded the contract.
References
* Supplier Selection Criteria: Supply Chain Management Review
* Weighted Scoring Method: Procurement Best Practices from ISM