The Forsite Company is screening three ideas for new services. Resource constrai

Question

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: Performance Criterion Capital equipment investment required Expected return on investment (ROI) Compatibility with current workforce skills Competitive advantage Compatibility with EPA requirements Service A 0.4 0.2 0.6 0.6 0.4 Rating Service B 0.8 0.8 0.5 0.3 0.7 Service C 0.9 0.2 0.3 0.7 0.7 alculate a total weighted score for each alternative. Use a preference matrix and assume equal weights for each performance criterion. Let the total of the weights equal 100. (Enter your responses as integers.) Service Total Weighted Score Which alternative is best? Worst?

Explanation / Answer

The total weighted score is calculated as the sum of the product of the factor score and their respective weights.

Here all the five performance criterion has equal weight. So the weight for each criterion = 100/5 = 20

So using the above formula the total weighted score for each service are

So the best alternative is service B as it has the highest total weighted score and the worst is service A as it has the lowest total weighted score  

Therefore the answer is option D

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