Jilltronics Security Systems: Vendor Selection Using Multi-Factor Analysis

Description

At a Jilltronics Systems board meeting in 2015, the chief executive officer (CEO) indicated an interest in reviewing the firm’s supply chain strategy in light of increasing product and service demand. Jilltronics, a regional player in the U.S. home security market with sales approaching $100 million annually, had experienced significant growth in both the new housing and retrofit markets. The CEO expressed his desire to take a more analytical approach in developing the supply chain strategy that might include expanding the number of vendors. He reported to the board that this initiative could pose some risks due to the challenges associated with managing multiple suppliers. The board meeting concluded with the CEO tasking the chief analytics officer with developing a vendor selection assessment plan and reporting her findings at the next board meeting.

Learning Objective

This case can be used in a graduate-level core analytics or operations management course. The case focuses on the use of multi-factor analysis in selecting qualified vendors. It can be used as an in-class activity (70 to 90 minutes) or as an out-of-class team exercise. After completion of this case, students should be able to: ·Appreciate the basic concepts behind multi-criteria decision analysis. ·Recognize the trade-offs associated with vendor selection. ·Comprehend the fundamentals of benefit-cost analysis. ·Understand how to conduct sensitivity analysis on key model factors.

Keywords

benefit-cost analysis electronic security multi-attribute analysis Sensitivity analysis vendor selection