Question

Problem 09.046 Cost Effective Analysis Various techniques have been proposed to curb cross-border drug smuggling into a country. The costs of implementing each strategy along a particularly rugged section of the border are indicated below. The table also includes a score that is compiled based on deterrence, interdiction, and apprehension, with a higher score indicating better performance. Determine the technique with the highest and the lowest cost-effectiveness ratio. For a budget of $53 million, determine the total cost of the most cost-effective techniques. Score Cost, $ 4.5 42.1 52 Activity Tethered Aerostats Boots-on-the-Ground Fence Motion Sensors Seismic Sensors Drones 14.2 8 5.6 12.8 26 The activity with the lowest cost-effectiveness ratio is Drones The activity with the highest cost-effectiveness ratio is Fence v The total cost is $ million.

Answer 1

Cost-effectiveness ratio = score/cost

Thus, the ratio of each will be:

1) tethered aerostats : 8/4.5 = 1.78

2) boots on the ground : 52/42.1 = 1.235

3) fence : 12/14.2 = 0.8451

4) motion sensors : 7/8 = 0.875

5) seismic sensors : 5/5.6 = 0.8929

6) drones : 26/12.8 = 2.03

Thus we see that:

The activity with lowest cost effectiveness ratio is fence.

The activity with highest cost effectiveness ratio is drones.

The total cost is 4.4 + 42.1 + 14.2+ 8 + 5.6+ 12.8 = 87.1 million dollars.