Problem: You are in charge of analyzing five new product ideas and have been given the information below. (1 = worst, 10 = best). Management has decided that criteria 2 and 3 are equally important and that criteria 1 and 4 are each four times as important as criterion 2. Only two new products can be introduced, and a product can be introduced only if its score exceeds 70 percent of the maxi-mum possible total points. Which product ideas do you recommend?
Performance Criteria Product A Product B Product C Product D Product E
Compatibility with current manufacturing 8 7 3 6 9
Expected return on investment (RIO) 3 8 4 7 7
Compatibility with current workforce skills 8 5 7 6 5
Units profit margin 7 6 9 2 7