Frisco Property Management is a hypothetical company that manages a large number rental properties

in the northern suburbs of Dallas. The company is outfitting a new administrative office and needs to

select a safe to store important documents. In working with their sales rep from Dallas Safe Company,

they have been presented with the following 4 options:

Brand

Cost

Fire Rating

Capacity

Lock Quality

Superior Safe

$1,200

4 hours

12 cubic feet

High (80)

Haddon Safe

$1,000

3 hours

10 cubic feet

Medium (50)

Ft. Knox Safe

$1,600

6 hours

12 cubic feet

Very high (100)

Safeco Safe

$800

2 hours

9 cubic feet

Low (20)

Smart Safe

$1,000

4 hours

9 cubic feet

High (80)

Note that relative rank values for the subjective attribute of lock quality have been assigned.

The manager responsible for the decision has assigned the following rank values to each attribute:

1

Fire rating (longest to shortest)

2

Lock quality (highest to lowest)

3

Cost (least expensive to most expensive)

4

Capacity (highest to lowest)

Questions:

1. Using SMARTER, compute the aggregate benefit score for each option

2. By taking into account the cost of each safe, determine which safe lies on the efficient frontier.

Explain the significance of this term.

3. SMARTER is based on the "principle of heroic approximation." Explain how this principle applies

to your analysis of the problem and discuss whether you think it is appropriate.

4. Fire rating is particularly important if the safe contains paper documents that could suffer

irreparable loss if destroyed or waterlogged in the event of a fire. Suppose, however, that the

building had a top-of-the-line dry chemical fire suppression system. If the Fire Rating were

changed to the least important criteria, how would your recommendation change?