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In Sourcing, on which option is the ranking based when you set Overall Ranking Method to "Composite scoring"?
Correct Answer: D
Explanation When you set the Overall Ranking Method to Composite scoring, you can assess suppliers on both pricing and qualitative aspects. Qualitative aspects include requirements such as technical capabilities, other commercial considerations, or risk. You can assign weights to requirement sections, including pricing, and calculate a composite score for each supplier based on their response amount and requirement scores. The composite score is a combination of the relative score for pricing and the weighted requirement score. The higher the composite score, the higher the overall rank. This way, you can rank suppliers not just based on the best pricing offered, but also on how well they meet your requirements. References: Rank Suppliers Based on Composite Score of Pricing and Requirements1 Oracle Supplier Negotiations2
