Question

Marlton, Ltd., located in Europe, has won an important contract to supply components regularly to a customer in another country. Four methods of transport are being considered shown on the table below. Marlton’s distribution manager has identified four relevant attributes for the decision. The set of benefits are punctuality, safety, and convenience. These will be evaluated against cost. The manager has assigned the following weights to each of the benefit attributes: punctuality is weighted 30, safety is weighted 60, and convenience is weighted 10. The manager has also rated the performance of each transport alternative against each of the attributes, shown below.

1. Calculate the aggregate benefit score for each transport alternative.
2. Graph the aggregate scores against cost and identify the efficient frontier.
3. Which transport alternative should Marlton choose?

Benefits
Form of Transport	Punctuality	Safety	Convenience	Cost
Air	100	79	60	$150,000
Sea	0	60	80	$90,000
Road and Ferry	60	0	100	$40,000
Rail and Ferry	70	100	0	$70,000

Answer 1