Rao Technologies, a California-based high-tech manufacturer, is considering outsourcing some of its electronics production. Four firms have responded to its request for bids, and CEO Mohan Rao has started to perform an analysis on the scores his OM team has entered in the table below.
|
Factor
|
Weight
|
Ratings of Outsource Providers
|
|
A
|
B
|
C
|
D
|
|
Labor
|
w
|
5
|
4
|
3
|
5
|
|
Quality procedures
|
30
|
2
|
3
|
5
|
1
|
|
Logistics system
|
5
|
3
|
4
|
3
|
5
|
|
Price
|
25
|
5
|
3
|
4
|
4
|
|
Trustworthiness
|
5
|
3
|
2
|
3
|
5
|
|
Technology in place
|
15
|
2
|
5
|
4
|
4
|
|
Management team
|
15
|
5
|
4
|
2
|
1
|
Weights are on a scale from 1 through 30, and the outsourcing provider scores are on a scale of 1 through 5. The weight for the labor factor is shown as a w because Rao's OM team cannot agree on a value for this weight. For what range of values of w, if any, is company C a recommended outsourcing provider, according to the factor-rating method?