Multi-Attribute Decision Making (MADM)

Assumed Certainty: Multi-Attribute Decision Making (MADM)
 
Scenario: You are the Vice President of Franchise Services for the Lucky restaurant chain. You have been assigned the task of evaluating the best location for a new Lucky restaurant. The CFO has provided you with a template that includes 6 criteria (attributes) that you are required to use in your evaluation of 5 recommended locations. Following are the 6 criteria that you will use to evaluate this decision:
Traffic counts (avg. thousands/day)—the more traffic, the more customers, and the greater the potential sales.
Building lease and taxes (thousands $ per year)—the lower the building lease and taxes, the better.
Size of building (square feet in thousands)—a larger building is more preferable.
Parking spaces (max number of customers parking)—more customer parking is preferable.
Insurance costs (thousands $ per year)—lower insurance costs are preferable.
Ease of access (subjective evaluation from observation)—you will need to “code” the subjective data. Use Excellent = 4, Good = 3, Fair = 2, and Poor = 1.
Now that you have collected the data from various sources (your CFO and COO, local real estate listings, personal observation, etc.), you have all the data you need to complete an analysis for choosing the best location. use the  Word document below
(Excel )
Complete Excel analysis using MADM (all four tables ).
Accurate Excel analysis (Excel file includes working formulas showing your calculations; all calculations and results must be accurate.
Table 1: Develop an MADM table with the raw data.
Table 2: Convert the raw data to utilities (scaled on 0 to 1). Show the utility weights in a second table.
Table 3: Develop a third table with even weights (16.7%) for each variable.
Evaluate Table 3 for the best alternative.
Table 4: Complete a sensitivity analysis by assigning weights to each variable.
Review the information and data regarding the different alternatives for a new restaurant location.
(2 PAGES)
In a Word document,
1Provide a brief introduction to/background of the problem.
2Discuss the steps you used to compile the Excel analysis (i.e., the four tables).
3Discuss the assumptions used to assign weights to each variable of your sensitivity analysis (Table 4). That is, provide the rationale for your choice of weights for each variable.
4Provide a complete and meaningful recommendation related to the location that should be chosen as a new site.
 
REFERENCE
http://permalink.fliqz.com/aspx/permalink.aspx?at=d55a346d20aa466d84ffd99b15f7d128&a=5fae3cf0f1624f39b0341263a6541ea0
http://permalink.fliqz.com/aspx/permalink.aspx?at=2cc5262c22b543ec928bec51be6c23f6&a=5fae3cf0f1624f39b0341263a6541ea0
 
BUS520 Module 3 SLP Assignment
Summary of Raw Data for location of Lucky restaurant in the Little Rock, Arkansas area.
Location
Traffic count (avg. thousands/day)
Building lease and taxes ($000/yr)
Bldg. size (sq ft. in thousands)
Parking Space (Max # of customer parking)
Insurance
costs
($000/yr)
Ease of Access
(subjective evaluation)
Little Rock
20
2.6
3.2
48
5.2
Good
Stuttgart
10
3.5
3.1
53
5.7
Fair
Daisy
14
1.6
2.4
40
5.5
Excellent
Pine Bluff
12
2.1
3.6
55
6.8
Fair
Newport
17
2.9
4.7
61
4.5
Poor