ESSAY: Analyze Lot Size Decision Rules

1. Analyze Lot Size Decision Rules  Your manager is considering to switch from lot-for-lot to periods of supply. She has asked you to review the lot size decision rules and to recommend which one would be best for the company. You confer on the ground rules and agree that a multiplier of three will be assigned for best performance in a category, two for second place, and one for last.

You have been provided the following data:

• Quality is the leading attribute to be considered and has been assigned a 45% weighting. The best record for quality has been achieved by lot-for-lot, followed by periods of supply, dynamic order quantities, and fixed order quantities in last
• Cost is the second most important attribute with a 30% weight. Cost is highest with fixed order, second highest is dynamic order, followed by periods of supply, and the lowest cost is lot-for-lot.

Create a simple MS Excel spreadsheet to enter the relevant data and to calculate the composite score for each of the lot decision rules. Post your spreadsheet for the class and state your recommendation for which supplier to drop from the list.