An example of a semiformal supplier evaluation tool is: An example of a semiformal supplier evaluation tool is: rating on-time delivery performance as poor, fair, good or excellent. measuring parts per million defects. cost reduction reports. conversations with others in the organization about how a supplier is doing. an annual discussion between top executives in the buying organization and those of the supplier.

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i.e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?