This section describes how the Vendor Evaluation system calculates a vendor's overall score and the scores for the main criteria.

The system derives the overall score from the scores for the various main criteria, taking the weighting factors assigned by Purchasing in the system settings for each main criterion into account.

The following example explains this process:

The table below shows the scores for a vendor and their weighting factors:

To make the weighting factors clearer to the user, the system converts them into percentages.

1. The system adds the factors together and equates the total with 100 %:

40 + 25 + 10 + 5 = 80 equals 100 %

2. To express the individual weighting factors as percentages of 100%, the system first divides 100% by the sum of the weighting factors:

100 / 80 = 1.25 %

3. Then the system multiplies the weighting factors the buyer assigned to the main criteria by this figure:

 

40 x 1.25 = 50.00 %

25 x 1.25 = 31.25 %

10 x 1.25 = 12.50 %

5 x 1.25 = 6.25 %

 

4. The following table shows the results as a percentage of the overall score:

However, internally, the system uses the weighting factors to compute the overall score.

1. The scores for the main criteria are multiplied by their weighting factors.

70 x 40 = 2800 points

85 x 25 = 2125 points

50 x 10 = 500 points

50 x 5 = 250 points

2. Total points = 5675.
3. This total is divided by the sum of the weighting factors:

The scores for the individual main criteria are determined in the same way as the overall score:

The system calculates the scores for all the subcriteria for a main criterion according to the weighting factors you assigned to them.
(See "Calculating the Overall Score", above).