Question

Consider the following data for office locations A, B, C, D along with weightages for desirable attributes and the values for each location: Location Attributes Distance Parking Car parking40 Accessibility 100 Weights Location Location Location Location 80 60 100 40 75 90 65 65 35 100 80 40 90 20 40 100 45 80 60 Also the cost details are given as follows: Location Annual Cost(S) 80,000 60,000 70,000 90,000 Apply SMART technique to: Q1. Demonstrate an understanding of appropriate decision making functions and tools to 15 marks] Categorize the location with highest aggregate benefit in an ethical fashion.

Answer 1

Location attributes	Weights	Norm weight
Distance	80	0.22857143
Parking	60	0.17142857
Car parking	40	0.11428571
Accessibility	100	0.28571429
Visibility	70	0.2

Location attributes	Weights	Norm weight	A	B	C	D
Distance	80	0.228571429	100	0	65	80
Parking	60	0.171428571	40	100	65	40
Car parking	40	0.114285714	75	45	35	90
Accessibility	100	0.285714286	90	80	100	20
Visibility	70	0.2	50	60	80	40
Aggregate benefits			74	57.14286	74.57143	49.14286

Cost benefit analysis

Location	Cost	Benefit
A	80000	74
B	60000	57.14
C	70000	74.57
D	90000	49.14

Since C offers highest benefits per unit cost, it is the most attractive alternative.