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. Importance Scores Attribute Manager Supervisor 1. Economics 80 25 2. Durability 35 80 3. Safety 30 100 4. Maintainability 20 90 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.) Value Rating Attribute Proposal A Proposal B 1. Economics 1.00 0.90 2. Durability 0.35 0.50 3. Safety 1.00 0.20 4. Maintainability 0.25 1.00 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
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.
Importance Scores
Attribute Manager Supervisor
1. Economics 80 25
2. Durability 35 80
3. Safety 30 100
4. Maintainability 20 90
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.)
Value Rating
Attribute Proposal A Proposal B
1. Economics 1.00 0.90
2. Durability 0.35 0.50
3. Safety 1.00 0.20
4. Maintainability 0.25 1.00
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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