Frisco Property Management is a hypothetical company that manages a large number
ID: 457148 • Letter: F
Question
Frisco Property Management is a hypothetical company that manages a large number rental properties in the northern suburbs of Dallas. The company is outfitting a new administrative office and needs to select a safe to store important documents. In working with their sales rep from Dallas Safe Company, they have been presented with the following 4 options:
Brand
Cost
Fire Rating
Capacity
Lock Quality
Superior Safe
$1,200
4 hours
12 cubic feet
High (80)
Haddon Safe
$1,000
3 hours
10 cubic feet
Medium (50)
Ft. Knox Safe
$1,600
6 hours
12 cubic feet
Very high (100)
Safeco Safe
$800
2 hours
9 cubic feet
Low (20)
Smart Safe
$1,000
4 hours
9 cubic feet
High (80)
Note that relative rank values for the subjective attribute of lock quality have been assigned.
The manager responsible for the decision has assigned the following rank values to each attribute:
Fire rating (longest to shortest)
Lock quality (highest to lowest)
Cost (least expensive to most expensive)
Capacity (highest to lowest)
Question:
Fire rating is particularly important if the safe contains paper documents that could suffer irreparable loss if destroyed or waterlogged in the event of a fire. Suppose, however, that the building had a top-of-the-line dry chemical fire suppression system. If the Fire Rating were changed to the least important criteria,, compute the aggregate benefit score for each option.
Brand
Cost
Fire Rating
Capacity
Lock Quality
Superior Safe
$1,200
4 hours
12 cubic feet
High (80)
Haddon Safe
$1,000
3 hours
10 cubic feet
Medium (50)
Ft. Knox Safe
$1,600
6 hours
12 cubic feet
Very high (100)
Safeco Safe
$800
2 hours
9 cubic feet
Low (20)
Smart Safe
$1,000
4 hours
9 cubic feet
High (80)
Explanation / Answer
Let's assume that the fire rating is only 20% as important as any other crtiera and that all other criteria are equally important to each other.
So we assign swing weight of 20 to to fire rating and 100 to each of the remaining three criteria. Next we Normalise the swing weights by dividing the individual swing weights by sumtotal of all the swing weights. The normalised swing weights.
The individual criteria value is also normalised in the same value as we did for swing weights. I.e by dividing the individual criteria value by the sumtotal of particular criteria value of all the options . For example the Normalised Cost Criteria value of Superior Cafe = 1200/(1200+1000+1600+800+1000)*100 = 21.4
Aggregate Benefits Scores for each option are given below:
Normalised Values Brand Cost Fire Rating (hours) Capacity (cubic feet) Lock Quality Aggregate benefit score Superior Safe 21 21 23 24 23 Haddon Safe 18 16 19 15 17 Ft. Knox Safe 29 32 23 30 28 Safeco Safe 14 11 17 6 12 Smart Safe 18 21 17 24 20 Raw Swing Weights 100 20 100 100 Normalised Swing Weights 31 6 31 31Related Questions
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