Rank order the vendors, keeping Amazon’s goals in mind.
Rank
Vendor
Customer Issues
Quantity Shipped
Shipped On Time
Cost to Amazon
1
Vendor:
K;
Customer Issues:
Low Amount;
Quantity Shipped:
Moderate Amount;
Shipped On Time:
High Amount;
Cost to Amazon:
High Amount;
2
Vendor:
F;
Customer Issues:
Moderate Amount;
Quantity Shipped:
High Amount;
Shipped On Time:
Moderate Amount;
Cost to Amazon:
High Amount;
3
Vendor:
E;
Customer Issues:
Low Amount;
Quantity Shipped:
Low Amount;
Shipped On Time:
High Amount;
Cost to Amazon:
Low Amount;
4
Vendor:
R;
Customer Issues:
Moderate Amount;
Quantity Shipped:
High Amount;
Shipped On Time:
Moderate Amount;
Cost to Amazon:
Low Amount;
· Move selected item up 1 rank
· Move selected item down 1 rank
· Low Amount; Low Amount
· Moderate Amount; Moderate Amount
· High Amount; High Amount
The correct answer and explanation is:
Based on the given data, we can rank the vendors based on Amazon’s key priorities: customer issues, quantity shipped, on-time shipments, and cost to Amazon. Amazon’s goal is to maintain low customer issues, ensure timely deliveries, maximize quantity shipped, and minimize costs.
Ranking Explanation:
1. Vendor E
- Customer Issues: Low amount — This aligns well with Amazon’s customer-first philosophy, ensuring customer satisfaction and minimizing complaints.
- Quantity Shipped: Low amount — While this is not ideal, it’s not a major issue compared to other factors like customer satisfaction.
- Shipped On Time: High amount — Timeliness is crucial for Amazon’s logistics. This vendor’s high on-time rate supports Amazon’s efficiency goals.
- Cost to Amazon: Low amount — Minimizing costs is essential for profitability. Vendor E offers a cost-effective solution.
Conclusion: Vendor E ranks highest as it ensures customer satisfaction (low issues), maintains on-time shipments, and is cost-effective, although the quantity shipped could be improved.
2. Vendor R
- Customer Issues: Moderate amount — This is a concern for Amazon, as it directly impacts customer satisfaction, but it is not as severe as Vendor F’s moderate issues.
- Quantity Shipped: High amount — A large quantity shipped is a strong advantage for Amazon, indicating efficiency in fulfilling large orders.
- Shipped On Time: Moderate amount — Timeliness is a bit of a concern here but does not outweigh the benefit of high quantities shipped.
- Cost to Amazon: Low amount — Like Vendor E, this vendor’s cost efficiency makes it attractive to Amazon.
Conclusion: Vendor R ranks second. While customer issues are moderate, the large quantity shipped and low costs make this vendor a good choice, despite some on-time shipping concerns.
3. Vendor K
- Customer Issues: Low amount — This is favorable, as customer satisfaction is critical.
- Quantity Shipped: Moderate amount — The quantity shipped is not as high as Vendor R’s but still significant.
- Shipped On Time: High amount — This vendor’s high on-time rate is beneficial, though it is outpaced by Vendor E.
- Cost to Amazon: High amount — The cost is a significant disadvantage, especially given that Amazon aims to minimize costs.
Conclusion: Vendor K ranks third, as the high cost to Amazon outweighs its advantages in customer satisfaction and timeliness.
4. Vendor F
- Customer Issues: Moderate amount — This is a serious concern as it affects customer loyalty and satisfaction.
- Quantity Shipped: High amount — While the quantity shipped is high, the customer issues must be addressed.
- Shipped On Time: Moderate amount — Timeliness is also a concern here.
- Cost to Amazon: High amount — Like Vendor K, the high cost makes this vendor less attractive.
Conclusion: Vendor F ranks last. Despite high quantities shipped, the moderate customer issues, moderate timeliness, and high costs make it less ideal for Amazon’s goals.
Final Rank Order:
- Vendor E
- Vendor R
- Vendor K
- Vendor F
Reasoning: Vendor E is the best due to its low customer issues, high on-time shipments, and low cost. Vendor R follows because it also offers high quantities and low costs, despite moderate customer issues and timeliness. Vendor K ranks third due to its high costs, while Vendor F is last due to its moderate customer issues, moderate timeliness, and high costs.