The Forsite Company is screening three new product ideas.Resource constraints allow only one idea to be commercialized at the present time.The following estimates have been made for the five performance criteria that management feels are most important.If the five criteria are equally weighted,what are the best and worst alternatives?

\begin{array}{r}\text { Estimated Rating }\\\text { Product } \quad \quad\\\begin{array}{|l|c|c|c|}\hline \text { Performance Criterion } & \quad\text { A } & \text { B } & \text { C } \\\hline\text { 1. Demand uncertainty } & & & \\\text { and project risk } & 0.3 & 0.9 & 0.2 \\\hline \text { 2. Similarity to present } & & & \\\text { products } & 0.7 & 0.8 & 0.6 \\\hline \text { 3. Expected return on } & & & \\\text { investment } & 1.0 & 0.4 & 0.8 \\\hline \begin{array}{l}\text { 4. Compatibility with } \\\text { current manufacturing } \\\text { process }\end{array} & 0.4 & 0.7 & 0.6 \\\hline \text { 5. Competitive advantage } & 0.4 & 0.6 & 0.5\\\hline\end{array}\end{array}

A) A is best, and B is worst.
B) B is best, and C is worst.
C) B is best, and A is worst.
D) C is best, and A is worst.

Erasmus Valero Must Decide Among Four Alternatives for a Oil

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