Utility Index Evaluation Formula.pdf

The document explains the concept of the Utility Index (Ui) used for evaluating firms based on both quality and price. The Ui formula combines quality and price to rank firms, with quality being weighted against price. The higher the resulting Ui, the better the offer in terms of 'Value for Money'. The formula considers the difference in quality scores between the best and other offers, as well as the weighting of quality and price. The document provides a detailed example of calculating Ui for three supplier responses (A, B, C) based on quality scores and prices, showing how the Ui is used to determine the best offer and rank other offers based on price deficits.