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Exercise 6: Use a weighted score model to choose between three projects (A,B,and C) for updating an important internal process method. The relative weights for
Exercise 6: Use a weighted score model to choose between three projects (A,B,and C) for updating an important internal process method. The relative weights for each criterion are shown in the table as are the scores for each project on each criterion. A score of 1 represents unfavorable, 2 satisfactory and 3 favorable. Which method is recommended, Project A, B or C, and why? NOTE: When using the weighted score model, make sure the weights add up to 100%. You may have to recalculate the percentages while still giving them the same weighted value for each criterion. Recommend adding a column to the right of "weight" for this new recalculated percentage. Look up the Excel function SUMPRODUCT-this will help you solve the problem. Praject Saley 7: Use the spreadsheet from Exercise 6. a. What would your recommendation be if the weights for Safety went down to 10 and Profitability went up to 25? b. Suppose instead that method A received a score of 3 for Safety and method C received a score of 1 for Safety. Would your recommendation change under these circumstances? c. The vice president of finance has looked at your original scoring model and feels that Tax Consideration should be included in the model with a weight of 15. In addition, the VP has scored the methods on Tax Consideration as follows: method A received a score of 3, method B received a score of 2, and method C received a score of 1. How would this additional information affect your recommendation? NOTE: When answering the questions a-c in Exercise 7, keep the changes as you progress in the problem. For example, when you change the weights for questions "a, keep the new weights when moving on to question "b. MAKE SURE YOU USE EXCEL TO DO THE CALCULATION TO SOLVE THE PROBLEMS
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