A firm intends to choose the best offer (or ranking of the offers) from the set of
Fantastic news! We've Found the answer you've been seeking!
Question:
- A firm intends to choose the best offer (or ranking of the offers) from the set of proposals submitted by potential contractors. Two experts evaluate five proposals using several criteria. In order to simplify the calculation, only four criteria are considered: deadline of payment after receipt the goods (in days), unitary price (in euro), conditions of warranty and contractor reputation, C1, C2, C3, C4, respectively. The criteria C1, C3, C4 are benefit criteria, the greater values being better, and C2 is the cost criterion, the smaller values are better. Criteria C3, C4 are subjectively evaluated by experts on basic available information and they are considered as intagible variables, while the other criteria are scaled using their own real numbers, respectively. Evaluate using TOPSIS and SAW method and determine the most probable from the two evaluators.
Table 1
C1 | C2 | C3 | C4 | |
A1 | 7 | 21 | MP | MG |
A2 | 7 | 24 | MG | F |
A3 | 14 | 25 | P | G |
A4 | 21 | 27 | MG | P |
A5 | 21 | 35 | MP | MP |
For the first evaluator(Table 2)
Table 2:
C1 | C2 | C3 | C4 | |
A1 | 7 | 21 | 4 | 7 |
A2 | 7 | 24 | 6 | 4 |
A3 | 14 | 25 | 3 | 8 |
A4 | 21 | 27 | 9 | 3 |
A5 | 21 | 35 | 9 | 4 |
For the second evaluator (Table 3)
Table 3
C1 | C2 | C3 | C4 | |
A1 | 7 | 21 | 4 | 6 |
A2 | 7 | 24 | 7 | 5 |
A3 | 14 | 25 | 2 | 8 |
A4 | 21 | 27 | 7 | 3 |
A5 | 21 | 35 | 3 | 3 |
Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
Posted Date: