3. 14.11 An airport baggage handling department has evaluated two proposals for baggage delivery conveyor systems. A
Question:
3. 14.11 An airport baggage handling department has evaluated two proposals for baggage delivery conveyor systems. A present worth analysis at i = 15% per year of estimated revenues and costs resulted in PWA = $460,000 and PWB = $395,000. In addition to this economic measure, three more attributes were independently assigned a relative importance score from 0 to 100 by the department manager and a senior team supervisor. Table Summary: Table divided into 2 main columns summarizes the importance scores given to 4 attributes important in baggage handling by the Manager and Supervisor. The column headers are: Column 1: Attribute, I; Column 2: Importance Scores. Column 2 is further divided into 2 columns with the headings: Manager and Supervisor. Attribute Importance Scores Manager Supervisor 1. Economics 80 25 2. Durability 35 80 3. Safety 30 100 4. Maintainability 20 90 Separately, you have used the four attributes to value rate the two proposals on a scale of 0 to 1.0 as shown in the following table. (The economic attribute was rated using the PW values.) Table Summary: Table divided into 2 main columns summarizes the value rating for two proposals given to 4 attributes important in baggage handling Manager and Supervisor. The column headers are: Column 1: Attribute, I; Column 2: Value Rating. Column 2 is further divided into 2 columns with the headings: Proposal A and Proposal B. Attribute Value Rating Proposal A Proposal B 1. Economics 1.00 0.90 2. Durability 0.35 0.50 3. Safety 1.00 0.20 4. Maintainability 0.25 1.00 Select the better proposal using each of the following methods: 1. Weighted evaluation of the department manager
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Basics Of Engineering Economy
ISBN: 9781259683312
3rd Edition
Authors: Leland T. Blank, Anthony Tarquin