Case Study: Evaluating Suppliers Performance based on Quality & Pricing in the F&B Industry Using Binary and Non-Binary Concepts

Introduction:

In the fast-paced Food and Beverage (F&B) industry, selecting the right suppliers is critical for maintaining quality, cost-effectiveness, and reliability. This case study explores the evaluation of suppliers using both binary and non-binary approaches, providing a comprehensive method to make informed decisions.

Suppliers and Criteria:

Four suppliers (A, B, C, D) are evaluated based on two criteria:

·         Organic Product Quality and

·         Competitive Pricing.

Each criterion is scored on a scale from 0 to 10.

The binary threshold is set at 6, meaning scores of 6 or higher are considered "Good" (1), and scores below 6 are "not good" (0).

Purely Numerical Score: Non – Binary Scores

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Before going to the Solutions let us understand Analogous Explanation of 3 Logical Operators with Vectors:

AND Operation with Vectors:

  Definition: The AND operation between two values or sets results in the minimum value or set where each element satisfies the AND condition.

  Analogy: In the context of vector or set operations:

• Explanation: When we apply the AND operation to two vectors (or sets) containing numerical values, we are essentially finding the element-wise minimum between corresponding elements in these vectors.

OR Operation with Vector:

  Definition: The OR operation between two values or sets results in the maximum value or set where at least one element satisfies the OR condition.

  Analogy: In the context of vector or set operations:

• Explanation: When we apply the OR operation to two vectors (or sets) containing numerical values, we are essentially finding the element-wise maximum between corresponding elements in these vectors.

XOR Operation with Vector:

  Definition: The XOR operation between two values or sets results in the elements that are unique to each set or value, excluding elements that are common.

  Analogy: In the context of vector or set operations:

• Explanation: When we apply the XOR operation to two vectors (or sets) containing numerical values, we are essentially finding the element-wise absolute difference (or symmetric difference) between corresponding elements in these vectors.

These terms ("Minimum", "Maximum", & "Difference") are used as analogies to help conceptualize how these logical operations can be interpreted in the context of numerical vectors or sets:

• Minimum Operation (AND): It reflects that the result of the AND operation is akin to finding the minimum value that satisfies a condition (both values must be true or non-zero).

• Maximum Operation (OR): It reflects that the result of the OR operation is akin to finding the maximum value that satisfies a condition (at least one value must be true or non-zero).

• Difference Operation (XOR): It reflects that the result of the XOR operation is akin to finding the difference or unique elements between two sets or vectors.

Solution:

Logical Operations: Scoring Scale 1 poor and 10 Outstanding:

Non Binary Analysis:

Interpretation:

Interpretation: Binary Analysis

Threshold:

IF: > = 6 – ‘Good’ – 1

IF: < 6 – ‘Bad’ – 0

We got an Combination of Balanced, Imbalanced and Reject Indicators specific to Different Suppliers. Using combination of Binary and Non-Binary Table gives us different perspectives of Ideas in evaluating suppliers Performance for our High Priority Project.

Decision:

We would like to go with –

• Supplier C - First Priority.

• Supplier A (Preferred)

• Supplier B Is not preferred because Purpose is to get Quality Organic Product for consumers but that itself not meet the guidelines & standards.

• Supplier D gets rejected on Grounds of Standards and guidelines. Pricing was also high. Not worth to continue with this Supplier anymore.

Supplier Selection based on Performance is mainly associated with the Farm to Plate Trade and even Trust module:

To summarize:

• Primary Module: Trade and Trust

• Secondary Modules: Track, Trace, Tip

Wrote a small python code in Google Colab by taking a small sample:

Output:

Output:

Contact me:

If you want to know more about Farm to Plate Inc and the Product. Please feel free to Inbox me to understand your Business Scenario and Problems associated by concatenating with our Blockchain and AI Solution that may Fit in with our Five Ts i.e., Track, Trace, Trade, Trust and Tip Modules built-in our Product.

Farm To Plate | eFishery | Paramount Software Solutions, Inc | Future Food Cast

#DataScience #Analytics #LinearAlgebra