Solutions to Chapter 14 Problems

14-1 Left to student.

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14-2 Noncompensatory Models: Full dimensional
Advantages:

1) Quick and easy to apply to eliminate one or more of the alternatives.

2) All attributes are considered in the analysis.
3) Simple, easy to understand, requires little computation if any.

Disadvantages:
1) Very often does not lead to a final selection.
2) May not eliminate any of the alternatives.
3) Tends to “satisfice” rather than optimize.

Compensatory Models: Single dimensional

Advantages:

1) Trade offs are taken into account in arriving at the final decision.
2) Will almost always arrive at a final choice, and method may be developed to break a tie
quantitatively.
3) Numerical answers seem to parallel intuitive choices.
4) All “worths” reduced to a single scale, makes complex problem computationally tractable.

Disadvantages:

1) Weighting is still subjective.

2) Compression to numerical values for qualitative subjective data is often difficult and time
consuming, and may not be meaningful;
3) Translation of numerical or subjective values to a single scale may not be plausible for all
individuals.

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14-3 Left to student.

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14-4 Some of the difficulties of developing nonlinear functions or nondimensional scaling of qualitative
(subjective) data are as follows:

(a) Dimensionless attributes will contain implicit weighting factors

(b) Dimensionless attributes will not follow same trend with respect to desirability
(c) A non-dimensionalizing procedure could inaccurately rate each attribute in terms of its fractional
accomplishment of the highest attainable value.
(d) Higher (lower) values could dominate the solution.

777
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14-5 (a) Assume ideal mean maximum

Criteria 1 for alternative C is acceptable.

Criteria 2 for all alternatives is acceptable.

Criteria 3 for all alternatives is acceptable.

Criteria 4 for alternative A & C is acceptable.

Only alternative C is acceptable for all criteria.

(b) Alternative A dominates B.

(c) Alternative C has the best value of the top ranked attribute 2.

778
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14-6 (a) Dominance

Vendor I I vs. III I vs. II vs. III vs.

vs. Retain III Retain
Attribute Vendor II
Reduction in throughput time Better Worse Better Worse Better

Flexibility Worse Worse Better Equal Better

Reliability Better Better Better Equal Better

Quality Worse Worse Better Equal Better

Cost of System Better Worse Worse Worse Worse

Dominance? No No No Yes No

Vendor II is removed from consideration.

(b) Satisficing
“Worst” Unacceptable
Acceptable Alternative
Attribute Value
Reduction in throughput time 50% Retain
Flexibility Good Retain
Reliability Good Retain
Quality Good Retain
Cost of System $350,000 None

Remove “Retain Existing System” from consideration

(c) Disjunctive Resolution

All alternatives still available (“Retain” already eliminated) pass because all options are acceptable in
at least one attribute.

(d) Lexicography
Attribute Number of Alternative
times “greater” Ranking
Reduction in throughput time 0 III > I > II
Flexibility 2 II = III > I
Reliability 1 I > II = III
Quality 2 II = III > I
Cost of System 4 I > III > II

Select Vendor III

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14-7 Left to student.

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14-8 (a) Non dimensional scaling.

Attribute Value Rating Procedure Dimenionless Values

1 175000 (250000 − Cost) 1.0

75000
200000 1.43

250000 0.0

2 Excellent Rate rank − 1 1.0

2
Good 0.5

Fair 0.0

3 Excellent Rate rank − 1 0.5

2
Good 0.0

4 99% Rating − 74 1
99 − 94
98% 0.2

94% 0.0

5 Excellent Rate rank − 1 0.5

2
Good 0.0

Non-Dimensional Scale

Attribute A B C

1 1.43 0.0 1.0

2 0.5 1 0.0

3 0.0 0.0 0.5

4 0.2 1 0.0

5 0.0 0.5 0.0

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14-8 continued

Additive Weighting

Attribut Weight A B C
e

1 0.25 1.43(0.25) 0.0 0.25

= 0.375

2 0.10 0.5(0.1) = 0.1 0.0

0.05

3 0.30 0.0(0.3) = 0.0 0.15

0

4 0.15 0.2(0.15) 0.15 0.0

= 0.030

5 0.2 0.0(0.2) = 0.1 0.0

0

ΣA = 0.3655; ΣB = 0.35; ΣC = 0.40.

Alternative C is preferred.

(b) When attributes are dependent to each other then treat them as single attributes.

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14-9 (a)
Attribute Relative Rank Normalized Rank
Social Climate 1.00 1/2.08 = 0.481
Starting Salary 0.50 0.5/2.08 = 0.240
Career Adv. 0.33 0.33/2.08 = 0.159
Weather/Sports 0.25 0.25/2.08 = 0.120
2.08 1.00

(b)
Alternatives

Attribute Apex (N.Y.) Sycon (L.A.) Sigma (GA.) Mc-Graw-Wesley (AZ.)

Starting Salary $35,000 $30,000 $34,500 $31,500

Dimensionless
Equivalent (DE) 1.0 0.0 0.9 0.3

DE = Worst Outcome - Outcome Being Made Dimensionless

Worst Outcome - Best Outcome

(c)
Attribute Normalized Apex Sycon Sigma Mc-Graw
Weight Wesley

Social 0.48 1x0.48 1x0.48 0.5x0.48 0x0.48

Climate

Starting 0.24 1x0.24 1x0.24 0.9x0.24 0.3x0.25

Salary

Career 0.16 0x0.16 0x0.16 0.6x0.16 1x0.16

Adv.

Weather/
Sports 0.12 0x0.12 0x0.12 0.33x0.12 0.67x0.12

Sum 0.72 0.63 0.59 0.31

Using lexicography we conclude that social climate is the most important attribute and Apex is selected.
Additive weighting also selects Apex.

783
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14-10 (a) Supplier A dominates supplier D. Therefore, supplier D can be eliminated.

(b) Supplier B meets minimum performance level for all the attributes.

(c) On the basis of quality supplier D is eliminated, looking next experience, supplier C is eliminated,
next on production capacity no one can be eliminated, on market reputation A is eliminated only B is
selected.

(d) B

784
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14-11 Left to student.

785
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14-12 (a) Left to student – no unique answer.

(b) Select a mathematical model similar to additive weighting. Let each judge set his/her own
weightings and develop a score for each contestant. Then, sum the three scores for each
contestant. The contestant with the highest total score is the winner.

This method will allow each judge to be as subjective about each attribute as he/she desires while
making the final selection objective.

786
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14-13

Attribute Procedure Value Dimensionless Value

1 Value − 6 10 1
10 − 6
8 0.5

7 0.25

6 0

2 Value − 2 5 1
5−2
4 0.67

3 0.33

2 0.0

3 Yes – 1, No – 0 Yes 1

No 0

4 Value − 3 5 1
5−3
4 0.5

3 0.0

5 Excellent = 1 Excellent 1

Good = 0 Good 0.0

Experience Quality of Management Market Production

Products Skills reputation capacity Total

Supplier A 1 0.33 1 0.0 1 3.33

Supplier B 0.5 1 1 0.5 0 2.5

Supplier C 0.25 0.67 0 1 1 2.92

Supplier D 0 0.0 1 0.0 0 1

Supplier A will be selected.

787
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14-14 i Wi Rank
1 1.0 1
2 ? 4
3 0.8 2
4 0.7 ? By inspection, Ranki=4=3
10

n
Vj = ∑ WiX ij
i=1

V2 = 2.3 = (1.0) (0.7) + W2 (1.0) + (0.8) (0.5) + (0.7) (1.0)

2.3 = W2 + 0.7 + 0.4 + 0.7

W2 = 0.50

V1 = 2.69 = (1.0) (1.0) + (0.5) (0.8) + (0.8) X3,1 + (0.7) (0.7)

2.69 = 1.0 + 0.4 + 0.8 X3,1 + 0.49

X3,1 = 2.69 - 1.0 - 0.4 - 0.49 = 1.0

0.8

Vj normalized = V1 = 2.69/2.69 = 1.00

V2 = 2.30/2.69 = 0.86

By inspection Rankj=1 = 2.0

Rankj=2 = 1.0

Filling in blanks,

i Wi Rank
1 1.0 1
2 0.5 4
3 0.8 2
4 0.7 3

788
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14-14 continued

Purchase
Keep Existing new machine
Tool Tool

Rank 2.0 1.0

X1j 1.0 0.7

Rank 2.0 1.0

X2j 0.8 1.0

Rank 1.0 2.0

X3j 1.0 0.5

Rank 2.0 1.0

X4j 0.7 1.0

Vj 2.69 2.30
Vj norm 1.0 0.86

789
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14-15 Left to student.

790
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14-16 Left to student.

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14-17 Left to student.

792
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 Solutions to Spreadsheet Exercises

14-18
A B C D E F G
1 Attribute Dr. Molar Dr. Feelgood Dr. Whoops Dr. Pepper
2 Cost $ 50 $ 80 $ 20 $ 40
3 Anesthesia Novocaine Acupuncture Hypnosis Laughing Gas
4 Distance 15 20 5 30
5 Office Hours 40 25 40 40
6 Quality Excellent Fair Poor Good
7
8 Quality Anesthesia
9 Excellent 4 Acupuncture 1
10 Fair 2 Hypnosis 4
11 Good 3 Laughing Gas 2
12 Poor 1 Novocaine 3
13
14 Attribute Dr. Molar Dr. Feelgood Dr. Whoops Dr. Pepper
15 Cost 0.50 0.00 1.00 0.67
16 Anesthesia 0.67 0.00 1.00 0.33
17 Distance 0.60 0.40 1.00 0.00
18 Hours 1.00 0.00 1.00 1.00
19 Quality 1.00 0.33 0.00 0.67
20 Sum = 3.77 0.73 4.00 2.67
^ best
21 choice
22
23
24 With novocaine rated as the preferred method of anesthesia, Dr. Whoops becomes
25 the dentist of choice.

793
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