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Scaling Evaluative Criteria and Supplier Performance Estimates in Weighted Point Prepurchase Decision Models
Author(s) -
Thompson Kenneth N.
Publication year - 1991
Publication title -
international journal of purchasing and materials management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.75
H-Index - 92
eISSN - 1745-493X
pISSN - 1055-6001
DOI - 10.1111/j.1745-493x.1991.tb00526.x
Subject(s) - thurstone scale , scaling , point (geometry) , rank (graph theory) , scale (ratio) , multidimensional scaling , order (exchange) , ranking (information retrieval) , econometrics , mathematics , computer science , statistics , artificial intelligence , economics , physics , geometry , finance , quantum mechanics , combinatorics
This article recommends the Thurstone Case V scaling technique as an extremely useful tool for scaling the importance weights associated with evaluative criteria and the probable performance of suppliers on these criteria. Thurstone scaling eliminates the need for traditional point estimates of these values when employing weighted point supplier evaluation models. Instead, decision makers simply rank order the relative importances of evaluative criteria and then rank order the projected performance of suppliers on these criteria. Thurstone scaling is then used to transform the rank ordered data into appropriate numeric scales for inclusion in the weighted point model. The appropriate use of Thurstone Case V scaling can greatly simplify the supplier rating process and instill in decision makers greater confidence that the results of weighted point evaluations reflect reality. The article demonstrates how Thurstone Case V scaling can be employed for supplier evaluation. Applications considerations and potential limitations for its use are also discussed.