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