Assignment Decision Theory

Last Updated on 28. April 2023 by Martin Schuster

Suppose we have three cars C1, C2, and C3. They have the same productivity but different parameters. The following table shows the parameter values.

Car	Color	Price EUR	Horsepower	Trunk volume
C1	White	25,000	120	300
C2	Silver	22,000	110	320
C3	Red	29,000	150	250

You assign 3 points to white, 4 points to silver and 4 points to red.

The budget is 30,000 EUR.

The preferred horsepower would be 180.

Task 1

Calculate the achievement rate for all parameters for all cars.

Solution

Car	Color	Price EUR	Horsepower	Trunk volume
C1	0.75	0.167	0.667	0.938
C2	1	0.267	0.611	1
C3	1	0.033	0.833	0.781

Task 2

Calculate the weights of each parameter with the direct ranking method. The following scores are given:

KPI	Score
Horse Power	10
Price	5
Space	6
Color	2

Solution

	Horse Power	Price EUR	Space	Color
Weight	0.435	0.217	0.261	0.087

Task 3

What car should you select from the calculation above?

Solution

	Color	Price	Horse Power	Trunk Volume	Final Score
C1	0.065	0.036	0.290	0.245	0.636
C2	0.087	0.058	0.266	0.261	0.671
C3	0.087	0.007	0.362	0.204	0.660

Car C2 has the highest final score and should be selected.