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Vendor Rating - Example

The document outlines a rating formula to evaluate vendors based on various criteria including quality, price, delivery, service, and relationship. It assigns different weights to each criterion based on importance, with quality receiving the highest weight of 35% and relationship the lowest of 5%. For each vendor, the document calculates a weighted rating for each criterion and an aggregate rating total by multiplying the ratings by the criteria weights and summing them.

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822 views5 pages

Vendor Rating - Example

The document outlines a rating formula to evaluate vendors based on various criteria including quality, price, delivery, service, and relationship. It assigns different weights to each criterion based on importance, with quality receiving the highest weight of 35% and relationship the lowest of 5%. For each vendor, the document calculates a weighted rating for each criterion and an aggregate rating total by multiplying the ratings by the criteria weights and summing them.

Uploaded by

aditya23986
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Criteria and Weights

Criteria Weight <--- Assign weights to each criterion to reflect its relative importance
Quality 35%
Price 30%
Delivery 20%
Service 10%
Relationship 5%
Total 100% <--- Individual weights should be such that this total is 100%

Rating Formula for Each Criterion

Quality Number of acceptable lots from vendor divided by total number of lots from ven

Price Lowest quoted price of all vendors divided by price of the vendor for whom the r

Delivery Number of ontime deliveries from vendor divided by total number of deliveries b

Service Number of "satisfactory" service visits divided by total number of service visits

Relationship Subjective evaluation of vendor's ability to maintain and enhance relationship


Rating between 0 and 1
(0: indicates absence of relationship approach; 1: indicates outstanding relations
reflect its relative importance

that this total is 100%

total number of lots from vendor

of the vendor for whom the rating is being done

by total number of deliveries by vendor

tal number of service visits

n and enhance relationship

ndicates outstanding relationship approach)


Criteria Quality Price

Weight 35% 30%

Acceptable Weighted Vendor's


Total lots lots Rating rating price Lowest price
Vendor 1 80 60 0.75 0.263 1,600 1,600

Vendor 2 100 90 0.90 0.315 2,100 1,600

Vendor 3 50 50 1.00 0.350 2,000 1,600

Vendor 4 50 45 0.90 0.315 1,800 1,600

The figures in blue are to be entered by the user.


Price Delivery Service

30% 20% 10%

Weighted Total Ontime Weighted Total Satisfactory


Rating rating deliveries deliveries Rating rating visits visits
1.00 0.300 10 9 0.90 0.180 4 4

0.76 0.229 5 5 1.00 0.200 1 1

0.80 0.240 8 6 0.75 0.150 3 2

0.89 0.267 15 10 0.67 0.133 5 4


Service Relationship

10% 5% Aggregate
rating
Weighted Weighted
Rating rating Rating rating
1.00 0.100 0.85 0.043 0.885
1.00 0.100 0.90 0.045 0.889
0.67 0.067 0.95 0.048 0.854
0.80 0.080 0.80 0.040 0.835

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