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Questions 2. Four new-product ideas have been suggested. These ideas have been r

ID: 2390579 • Letter: Q

Question

Questions 2. Four new-product ideas have been suggested. These ideas have been rated as shown in the following table:

a. Using an equal point spread for all five ratings (i.e .. P = 1. F = 2. G = 3, VG = 4. E = 5) Determine a weighted score for each product idea. What is the ranking of the three products?

b. Rank the criteria, compute the rank-sum weights, and determine the score for each alternative. Do the same using the rank reciprocal weights.  

Criteria Development Cost Sales Producibility Competition Technical Risk Patent Protection Compatibility Weight 0.1 0.15 0.1 0.15 0.2 0.1 0.2

Explanation / Answer

Weighted score of each product :

A B C D

Developement cost .3 .2 .3 .4

Sales .3 .45 .60 .3

Productibility .2 .3 .3 .5

Competition .45 .6 .15 .45

Technical Risk .8 .2 .6 .4

Patent Protection .1 .1 .3 ..3

Compatibility .4 .4 .8 .6

Total Weighted score 2.55 2.25 3.05 2.95

Rank 3 4 1 2

Product C is more profitable as competition and risk are less than others. Sale is also higher than other products.