California Manufacturing,Inc.is now evaluating two new product ideas,and management has decided to apply the preference matrix method.The following table shows five criteria with different weights and individual scores of each product idea.If management has established a threshold of 800,which product(s)should be accepted for further development?
$$\begin{array} {r}
{ \text { Score } } \
{ \text { Product } } \
\begin{array} { | l | c | c | c | }
\hline \text { Performance Criterion } & \text { Weight } & \text { A } & \text { B } \
\text { Market potential } & 40 & 10 & 8 \
\text { Profitability } & 30 & 8 & 8 \
\text { Operations compatibility } & 15 & 2 & 10 \
\text { Investment requirements } & 10 & 4 & 6 \
\text { Risk } & \underline{ 5 } & 6 & 8 \
&{ 100 }\
\hline
\end{array}\end{array}$$
A) Product A
B) Product B
C) Both products A and B
D) Neither product A nor B

Question

California Manufacturing,Inc.is now evaluating two new product ideas,and management has decided to apply the preference matrix method.The following table shows five criteria with different weights and individual scores of each product idea.If management has established a threshold of 800,which product(s)should be accepted for further development?
$$\begin{array} {r} 
{ \text { Score } } \
 { \text { Product } } \
\begin{array} { | l | c | c | c | } 
\hline \text { Performance Criterion } & \text { Weight } & \text { A } & \text { B } \
\text { Market potential } & 40 & 10 & 8 \
\text { Profitability } & 30 & 8 & 8 \
\text { Operations compatibility } & 15 & 2 & 10 \
\text { Investment requirements } & 10 & 4 & 6 \
\text { Risk } & \underline{ 5 }  & 6 & 8 \
&{ 100 }\
\hline
\end{array}\end{array}$$
A) Product A
B) Product B
C) Both products A and B
D) Neither product A nor B

Quizplus · Accepted Answer

To determine which product(s) should be accepted for further development, we need to calculate the weighted score for each product based on the criteria and weights given.

For product A:

Weighted score = (40 x 10) + (30 x 8) + (15 x 2) + (10 x 4) + (5 x 6) = 700

For product B:

Weighted score = (40 x 8) + (30 x 8) + (15 x 10) + (10 x 6) + (5 x 8) = 790

Both products score below the established threshold of 800, but product B has a higher score.

Therefore, the best choice is B, and product B should be accepted for further development.

California Manufacturing,Inc A) Product a B) Product B C) Both Products a Decided

California Manufacturing,Inc A) Product a
B) Product B
C) Both Products a Decided