How Response Rank Using Weights and Scores Is Calculated

Once you have identified the important attributes of your negotiation and assigned them weights and scores, the application uses them to determine the total score for the responses to your negotiation.

Since all weighted attributes are required attributes, each respondent must specify a value for that attribute.

How a Response Rank Is Calculated

The application calculates the value of a response as follows:

  1. For each response to a weighted attribute, the application determines the score based on the attribute value scores you defined. For date and number attributes, the application determines which accepted range the value falls in. If the response does not fall in an acceptable range, the response receives a score of 0 for the attribute.

  2. The score determined is then multiplied by the weight assigned to the attribute.

  3. The adjusted scores are added to determine the total score for the response. The total score is then divided by 100 to convert it to a percentage. The price is then divided by the total score to determine the price to total score ratio. The response with the lowest ratio is considered the more desirable response.

Example 1

Assume a buyer has defined a negotiation and selected the following attributes to be weighted:

The following table shows the sample attributes and their values that are used in the example.

Attribute

Weight

Quantity

50

Need-by Date

30

Color (User-defined attribute)

20

For each of these attributes, the buyer has also defined and scored all acceptable values:

The following table shows the sample attributes and their acceptable values and scores.

Attribute

Acceptable Values

Score

Quantity

<1000

60

Quantity

>1001

100

Color

User-defined color 1 (for example, red)

100

Color

User-defined color 2 (for example, blue)

75

Given these definitions, the price to total score ratios for the following two possible responses are calculated as shown, and Response 2 would be designated as the best response even though the bid price for Response 2 is higher.

Response 1:

The following table shows the sample attributes and the response given to each attribute.

Attribute

Response Value

Quantity

980

Color

User-defined color 2

Price

$250

Total score: (60 * 50) + (75 * 20) / 100 = 45

Price to Total Score Ratio: 250 / 45 = 5.56

Response 2:

The following table shows the sample attributes and the responses given for each attribute.

Attribute

Response Value

Quantity

1200

Color

User-defined color 1

Price

$300

Total Score: (100 * 50) + (100 * 20) / 100 = 70

Price to Total Score Ratio: 300 / 70 = 4.29