Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Textbook Question
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:
- 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?
- 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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Instructions:
Create your preference matrix in an
excel spread sheet. Please calculate the
weighted score for the following example:
You are contemplating attending
university in the future. Alternatives for
school choices were scored on a scale of 1
to 5 (5= the best) against weighted
performance criteria, as shown in the
table below. The criteria include rent,
quality of life, school reputation, proximity
to markets, proximity to bars/restaurants,
proximity to recreation, neighborhood
security, tuition, school sport teams and
student to teacher ratio. What location,
according to your calculations, is the ideal
choice for attending University.
School Choice.
is Bishop's University, 2600 College
St.Sherbrooke, QC. J1M 127 CANADA
Location
Factor
Rent
Prox. to Bars/Resto
Prox. to Markets
Prox. to Recreation
School Sports
Stu/Teach Ratio
Neighborhood Security
Quality of Life
School reputation
Tuition
Factor
Weight
10
20
10
5
10
5
5
10
5
20
Total
100
Factor Score for Each Location
A-…
Construct a decision tree for this problem.
What is the recommended decision if the agency opinion is not used? What is the expected value?
What is the expected value of perfect information?
What is Hale’s optimal decision strategy assuming the agency’s information is used?
What is the expected value of the agency’s information?
Is the agency’s information worth the $5000 fee? What is the maximum that Hale should be willing to pay for the information?
What is the recommended decision?
XYZ work in a small electric business in Basrah city. He had a
sunshine controller device. He had to decide how to market his
idea, and in the short term, his options could be summarised as
selling the device locally, selling nationally through a website,
entering a partnership with an existing company or selling the
patent. His returns depended on demand, which he described
as high, medium, or low.
Using this simple model, he developed the matrix of potential
annual gains shown below:
Options
Demand
High
Medium
Low
Market locally
60
90
45
Use website
23
90
78
Partnership
12
25
89
Sell patent
30
30
30
Identify the decision taken under
the following approaches:
(1) Equal probability
(2) Regret
(3) Hurwicz criterion.
Note: The decision maker's degree of Pessimistic (a) is 0.3.
Chapter A Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Ch. A - Mary Williams, owner of Williams Products, is...Ch. A - Prob. 2PCh. A - An interactive television service that costs $10...Ch. A - A restaurant is considering adding fresh brook...Ch. A - Spartan Castings must implement a manufacturing...Ch. A - A news clipping service is considering...Ch. A - Prob. 7PCh. A - Techno Corporation is currently manufacturing an...Ch. A - The Tri-County Generation and Transmission...Ch. A - Prob. 10P
Ch. A - Tri-County G&T sells 150,000 MWh per year of...Ch. A - The Forsite Company is screening three ideas for...Ch. A - Prob. 13PCh. A - Prob. 14PCh. A - Janice Gould of Krebs Consulting is in the process...Ch. A - Build-Rite Construction has received favorable...Ch. A - Prob. 17PCh. A - Prob. 18PCh. A - Prob. 20PCh. A - Prob. 21PCh. A - Prob. 22PCh. A - Prob. 24P
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