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
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(c) Select A, since PWA is larger
Conclusion: 2 methods indicate A, but the supervisor’s score-basis indicates indifference between A and B.
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