A firm will decide on the percentage order-quantity allocation among three vendors, A, B or C.

A firm will decide on the percentage order-quantity allocation among three vendors, A, B or C. Each vendor is willing and has the capacity to satisfy any portion of the buyer’s need at the quoted price. The criteria that are considered are quality, price, lead time, and service. Criteria are independent. The preference matrix is given as:

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From the pairwise comparisons the weights for each of the vendor with respect to criteria can be presented as:

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(a) What is the desired solution for the firm? Check the preference matrix for consistency. (b) When comparing the vendors under the price criterion, how do you phrase the question to the decision maker? Give an example.

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