Herron Company is screening three new product ideas: A, B, and C. Resource constraints allow only one of them to be commercialized. The performance criteria and ratings, on a scale of 1 (worst) to 10 (best), are shown in the following table. The Herron managers give equal weights to the performance criteria. Which is the best alternative, as indicated by the preference matrix method?

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Performance Criterion 1. Demand uncertainty and project risk 2. Similarity to present products 3. Expected return on investment (ROI) 4. Compatibility with current manufacturing process 5. Competitive advantage Product A 3 7 10 4 4 RATING Product B 9 8 4 7 6 Product C 2 6 8 6 5