To work this problem via spreadsheet, please refer to the data in Problem 10.50. (a) Determine which

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To work this problem via spreadsheet, please refer to the data in Problem 10.50.

(a) Determine which proposal, A or B, to select using the weighted attribute method and the importance scores for the manager and the supervisor.

(b) You have given proposal B a very low rating, Vij, for safety, only 20%. Determine the minimum value rating that you would have to assign to proposal B for the safety attribute to select B with an RB that is at least 10% more than that determined previously for proposal A.


Problem 10.50

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 3. Safety 4. Maintainability 35 80 30 100 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.)

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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