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An operations manager is performing a factor-rating analysis to help her choose an outsourcing provider. She is focusing on three factors: A, B, and C, with weights of .50, .20, and .30, respectively. She has scored one potential outsourcer, Ling Services, on each of the factors using a scale of 10-50. Ling Services received a score of 30 for factor A, 46 for factor B, and 22 for factor C. What is the factor-rating score for Ling Services?

A) 32.7

B) 21.8

C) 30.8

D) 98.0

E) 29.2

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Answer:

C) 30.8

Explanation:

The operations manager will determine the factor-rating score by the weighted average of all factors' scores.

Factor A - weight: 0.50; score: 30

Factor B - weight: 0.20; score: 46

Factor C - weight: 0.30; score: 22

The factor-rating score is:

[tex]S = (0.50*30)+(0.20*46)+(0.30*22)\\S=30.8[/tex]

The factor-rating score for Ling Services is 30.8.

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