To work this problem via spreadsheet, please refer to the data in Problem 10.50.

Question

(a) Determine which proposal, A or B, to select using the weighted attribute method and the importance scores for the manager and the supervisor.
(b) You have given proposal B a very low rating, Vij, for safety, only 20%. Determine the minimum value rating that you would have to assign to proposal B for the safety attribute to select B with an RB that is at least 10% more than that determined previously for proposal A.
Problem 10.50

An airport Baggage Handing Department has eval­uated two proposals for baggage delivery conveyor systems. A present worth analysis at i = 15% per year of estimated revenues and costs resulted in PWA = $460,000 and PWB = $395,000. In addition to this economic measure, three more attributes were independently assigned a relative importance score from 0 to 100 by the department manager and a senior team supervisor.
Separately, you have used the four attributes to value rate the two proposals on a scale of 0 to 1.0 as shown in the following table. (The economics attribute was rated using the PW values.)

Select the better proposal using each of the follow­ing methods:
(a) Weighted evaluation of the department manager
(b) Weighted evaluation of the team supervisor
(c) Present worth

Answer 1

(a) The spreadsheet shows that A is selected from the manager’s scores (RA = 0.771) and that A is very, very slightly better than B using the supervisor’s scores (RA = 0.595 vs. RB = 0.585).


(b) Use Goal Seek to force RB to equal 0.595*1.10 = 0.655. Your value rating for safety must increase from 0.20 to a minimum of 0.41.