A manufacturing company must select a primary vendor for its raw materials and a secondary vendor for backup, aiming to minimize potential supply chain disruptions. The primary vendor must have at least 95% on-time delivery rate, and the secondary vendor must have at least a 90% on-time delivery rate. Which combination of vendors should the company choose? Select a Primary Vendor (from the first list) and a Secondary Vendor (from the second list). Primary Vendor Options: 1. Vendor A: 96% On-time delivery, 5% Defect rate 2. Vendor B: 93% On-time delivery, 3% Defect rate 3. Vendor C: 98% On-time delivery, 4% Defect rate Secondary Vendor Options: 1. Vendor X: 91% On-time delivery, 6% Defect rate 2. Vendor Y: 88% On-time delivery, 2% Defect rate 3. Vendor Z: 94% On-time delivery, 5% Defect rate
✓ Correct Answer: Option B
The primary vendor must have >=95% on-time delivery, so Vendor A (96%) or Vendor C (98%) are viable. The secondary vendor must have >=90% on-time delivery, so Vendor X (91%) or Vendor Z (94%) are viable. Option B, Vendor C (98%) and Vendor X (91%), satisfies both conditions.