The Forsite Company is screening three new product ideas.Resource constraints allow only one idea to be commercialized at the present time.The following estimates have been made for the five performance criteria that management feels are most important.If the five criteria are equally weighted,what are the best and worst alternatives?

Question

Quizplus · Accepted Answer

To determine the best alternative, we need to calculate the weighted score for each alternative by adding up the scores for each criteria and dividing by 5 (since there are 5 equally weighted criteria).

For option A, the weighted score is:
(0.3 x 80) + (0.15 x 60) + (0.15 x 70) + (0.2 x 85) + (0.2 x 60) = 72.5

For option B, the weighted score is:
(0.3 x 90) + (0.15 x 70) + (0.15 x 60) + (0.2 x 70) + (0.2 x 80) = 77

For option C, the weighted score is:
(0.3 x 70) + (0.15 x 80) + (0.15 x 90) + (0.2 x 60) + (0.2 x 90) = 77

Therefore, option B has the highest weighted score and is the best alternative, while option A has the lowest weighted score and is the worst alternative.

The Forsite Company Is Screening Three New Product Ideas