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A medical vending machine (MVM) is a machine which dispenses non-prescription medical items after inserting currency or using a credit card. Dar AlShifa hospital is

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A medical vending machine (MVM) is a machine which dispenses non-prescription medical items after inserting currency or using a credit card. Dar AlShifa hospital is planning to purchase an MVM. The hospital managers have identified three attributes that are important, which are (i) Capacity (in terms of items it can hold), (ii) Security, and (iii) Warranty. The hospital has narrowed down the company to purchase from to four, which are (1) Medic - Aid, (2) Pharmashop, (3) Instymeds, and (4) MGT. The managers have assessed how well each alternative (machine) performs on each attribute on a scale from 0 to 100 which is given in the following table: Alternative/Attribute Capacity Security Warranty Medic -Aid 100 60 Pharmashop 80 100 Instymeds 40 70 100 MGT 0 90 40 1. Which attributes can be classified as quantifiable, and which ones as non-quantifiable? Why? Identify a variable for quantifiable attributes. 2. The managers allocate the weights of 30, 50, and 20 to Capacity, Security, and Warranty, respectively. It will cost Dar AlShifa 5,000 KD, 5,000 KD, 6,000 KD, and 7,000 KD to purchase a vending machine from the companies Medic-Aid, MGT, Pharmashop, and Instymeds, respectively. Identify the alternatives that lie on the efficient frontier. 3. If each aggregate benefit point is worth of 50 KD to the managers, which alternative should they choose? Why? What assumptions do you make

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