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A British company is considering four transportation methods to supply components to Poland: air, sea, road and ferry, and rail and ferry. The distribution manager identified relevant attributes of punctuality, safety, convenience, and cost. She assigned weights and rated each method. Plotting the value of overall benefits against costs showed rail and ferry and road and ferry on the efficient frontier. If the manager was willing to pay $70,000 annually, rail and ferry would be chosen as it provides $566.04 more value per point than road and ferry. Moving one point from least to most safe transport would be worth $1,166.66 to the manager.

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173 views2 pages

Smart

A British company is considering four transportation methods to supply components to Poland: air, sea, road and ferry, and rail and ferry. The distribution manager identified relevant attributes of punctuality, safety, convenience, and cost. She assigned weights and rated each method. Plotting the value of overall benefits against costs showed rail and ferry and road and ferry on the efficient frontier. If the manager was willing to pay $70,000 annually, rail and ferry would be chosen as it provides $566.04 more value per point than road and ferry. Moving one point from least to most safe transport would be worth $1,166.66 to the manager.

Uploaded by

udelkingkong
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Latihan SMART

A British company has won an important contract to supply components regularly to Poland. Four methods of transport are being considered: (i) air, (ii) sea, (iii) road and ferry and (iv) rail and ferry. The companys distribution manager has identified four relevant attributes for the decision: Punctuality, Safety of Cargo, Convenience and Costs. She has also allocated weights of 30 to punctuality, 60 to safety of cargo and 10 to convenience. The manager then rated the performance of each form of transport on the different attributes. The values she assigned are shown below together with the estimated annual cost of using each form of transport.

1.

Determine the form of transport which has the highest valued overall benefits, assuming that mutual preference independence exists between the attributes. For each form of transport, plot the value of overall benefits against costs and hence identify the forms of transport which lie on the efficient frontier. If the manager would be prepared to pay $70 000 per year to (all else remaining equal), determine which alternative she

2.

3.

1/4/13 from the least safe to the most safe form of transport move

Pembahasan

Efficient Frontier
12 10 8 Aggregate Benefit 6 4 2 0 20000

170000

120000 Cost

70000

Extra value from Road & Ferry Rail & Ferry ($70000-$40000) / (81-28) = $ 566,04 /point 2. Extra 1/4/13 value point from least to most safe: $70000/60 = $ 1,166.66 / point
1.

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