Heartland & Co. Om Case Essay
1. What are the advantages of basing a supplier’s overall evaluation on its lowest performance on one of the five dimensions (Quality, Delivery, Cost Management, Technical Support, and Wavelength)? What are the disadvantages? Overall, do you think that basing a supplier’s overall evaluation on its lowest performance on one dimension is a good idea or not? Why or why not?
There are a couple advantages of basing a supplier’s overall evaluation on its lowest performance measure. One such advantage is that it is a clear and simple way of eliminating suppliers that measure poorly against suppliers that measure highly to a company. It also is a simple way to determine the major flaws of a particular supplier and how …show more content…
5. Assume that Heartland & Company is considering paying a price premium to the more highly rated supplier (New England Works) in this year’s buy of part #B02326620. If the only two suppliers quoting on this part are New England Works and Midwest Bearings what percentage premium (over the lower price) would you recommend? Please justify your response.
I would offer up to a 2.8% premium over the lower price. I would not go over this because if I was to surpass