Operations Management: Processes and Supply Chains (11th Edition)
Operations Management: Processes and Supply Chains (11th Edition)
11th Edition
ISBN: 9780133872132
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter A, Problem 12P

The Forsite Company is screening three ideas for new services. Resource constraints allow only one idea to be commercialized at the present time. The following estimates have been made for the five performance criteria that management believes to be most important:

Chapter A, Problem 12P, The Forsite Company is screening three ideas for new services. Resource constraints allow only one

  1. Calculate a total weighted score for each alternative. Use a preference matrix and assume equal weights for each performance criterion. Which alternative is best? Worst?
  2. Suppose that the expected ROI is given twice the weight assigned to each of the remaining criteria. (The sum of weights should remain the same as in part [a].) Does this modification affect the ranking of the three potential services?

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