Why wasn’t the lowest price supplier taken?
The Jolly Company sells candy and issued an RFQ to purchase a line of chocolates that are made to their specifications. After inspecting the samples for quality, the following results were determined for the three suppliers. Quality ratings were determined by the look and taste of the samples. The quality of the samples from Supplier A, the low cost supplier, didn’t taste and look nearly as good as those from Supplier B and C. The prices quoted per pound were as follows: Supplier A is $6.20, Supplier B is $6.80, and Supplier C is $7.20 per pound. a. Which supplier should be selected based on the scores? b. Why wasn’t the lowest price supplier taken?
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