Frisco Property Management M E M O R A N D U M To: Management From:[name] Date:[date] Re:Selection of a new fire safe Business Problem [briefly describe the business problem] Options The following fire safes have been evaluated: Brand Cost ($) Fire Rating (hours) Capacity (cuft.) Lock Quality (relative subjective rating) Superior Safe $ 1,200 4 12 80 Haddon Safe $ 1,000 3 10 50 Ft. Knox Safe $ 1,600 6 12 100 Safeco Safe $ 800 2 9 20 Smart Safe $ 1,000 4 9 80 The relative ranking of the variables in the decision is as follows: [specify ranking] Decision Analysis Method and Scoring The decision as to which safe to select was made utilizing the SMARTER method. [briefly describe]. Based on this method, the Aggregate Benefit Score for each safe was computed. [insert table of ABS score calculations] The outcome of this method shows that [safe brand] represents the best decision for Frisco Property Management. Efficient Frontier The following graph shows the Efficient Frontier for these safe choices. [insert graph of ABS vs. price] [discuss the meaning and interpretation of the efficient frontier] The Principle of Heroic Approximation This decision analysis relies on the principle of heroic approximation. [describe what this is and how it relates to the decision. Alternative Decision Based on Change in Ranking of Fire Rating Based on the recent decision of Frisco Property Management to invest in a state-of-the-art fire suppression system, the Fire Rating of the safe may be less important to the decision. With the relative ranking of Fire Rating reduced, the ABS would be recalucated as follows: [Show recalculation of ABS with lower ranking of Fire Rating] [Discuss change in decision resulting from this changed ranking] Part 2: Format a memo from your organization similar to the Frisco Property Management memo Business Problem [briefly describe the business problem] Options The following options are available: Option Variable name 1 Variable name 2 Variable name 3 Variable name 4 Option A Option B Option C Option D The relative ranking of the variables in the decision is as follows: [list rank order] Decision Analysis Based on the data above, the Aggregate Benefit Score for each Option is as follows: [Show table of calculation of ABS for each option]. This analysis shows that the optimal choice for our organization is [option X]. [describe factors that influenced this decision and why it is the best]