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Please detail and write all steps needed to get to the answer. (3) A chemical company is expanding its operations and a disused woolen mill
Please detail and write all steps needed to get to the answer.
(3) A chemical company is expanding its operations and a disused woolen mill is to be converted into a processing plant. Four companies have submitted designs for the equipment which will be installed in the mill and a choice has to be made between them. The manager of the chemical company has identified three antributes which he considers to be important in the decision: "cost," 'environmental impact' and 'reliability: He has assessed how well each design performs on each attribute by allocating values on a scale from 0 (the worst design) to 100 (the best). These values are shown below, together with the costs which will be incurred if a design is chosen. (b) Eventually, the manager decides to allocate 'environmental impact' a weight of 30 and 'reliability' a weight of 70. By plotting the benefits and costs of the designs on a graph, identify the designs which lie on the efficient frontier (c) The manager also decides that if he was offered a hypothetical design which had the lowest reliability and the worst environmental impact he would be prepared to pay $120,000 to convert that design to one which had the best impact on the environment but which still had the lowest level of reliability. Which design should the manager choose Step by Step Solution
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