Logical Decisions - Classweb

Logical Decisions - Classweb Logical Decisions - Classweb

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Adding a Measure for Resale Value. First, let's add the "Resale Value" measure. Since this is a cost related measure we will associate it with the "Price" measure under a new "Cost" goal. First we will add the "Cost" goal: 1. Select the Goals Hierarchy window or create a new one with the View::Goals Hierarchy option. 2. Click on the “Buy the Best Truck” box to select it. 3. Click the Add a Goal button. 4. LDW will display the Goal dialog box. 5. Change the name of the goal to "Cost." 6. Click on the “Position” tab. 7. Click on the "Price" measure in the "Members" list to tell LDW to move the "Price" measure to under the "Cost" goal. 8. Click "OK" to close the goal dialog box. 9. LDW will ask you to confirm that the “Price” measure should be moved. 10. Click "OK" to confirm. You should see the new "Cost" goal below the "Buy the Best Truck" goal in the Goals Hierarchy window. Now we will add the "Resale Value" measure. 1. In the Goals Hierarchy view, click on the "Cost" goal to select it. 2. Click the Add a Measure button and click "OK". 3. In the measure dialog box, change the name to “Resale Value.” 4. Click on the “Scale” tab. 5. Change the units to “percent of original purchase price” 6. Change the Most Preferred Level to 75. 7. Change the Least Preferred Level to 45 8. Click “OK” 5-4 Section 5 -- Advanced Tutorial

This information indicates that the range for “Resale Value” is from 45% to 75% percent of the original purchase price, with 75% being preferred. Next we will assess the weight for the new measure. We'll prepare for this by adding a utility function for the "Cost" goal. We can do this in the Assess::Weights dialog box: 1. Select the Assess::Weights option. 2. In the mini-hierarchy, click in the “Cost” goal. 3. Click the “Has a MUF” radio button. 4. LDW will ask you to confirm that it should add a new MUF for the “Cost” goal. 5. Click “Yes.” Now you will assess the weights for the two members of the cost goal using the “Smart” method: 6. Click on the “Weights” tab and make sure that the “Cost” goal is shown in the “Goal” combo box.. 7. Select the "Smart method (Swing Weights)” from the "Weight Assessment Method" combo box 8. Click the "Assess" button. In the Smart assessment method, we assess swing weights that represent the relative importance of "swinging" a measure from its worst to its best level. For now we'll assume that the "Price" measure has a swing weight twice that of the "Resale Value" measure. To indicate this: Section 5 -- Advanced Tutorial 5-5

Adding a Measure for Resale Value. First, let's add the "Resale<br />

Value" measure. Since this is a cost related measure we will<br />

associate it with the "Price" measure under a new "Cost" goal.<br />

First we will add the "Cost" goal:<br />

1. Select the Goals Hierarchy window or create a new one<br />

with the View::Goals Hierarchy option.<br />

2. Click on the “Buy the Best Truck” box to select it.<br />

3. Click the Add a Goal button.<br />

4. LDW will display the Goal dialog box.<br />

5. Change the name of the goal to "Cost."<br />

6. Click on the “Position” tab.<br />

7. Click on the "Price" measure in the "Members" list to tell<br />

LDW to move the "Price" measure to under the "Cost"<br />

goal.<br />

8. Click "OK" to close the goal dialog box.<br />

9. LDW will ask you to confirm that the “Price” measure<br />

should be moved.<br />

10. Click "OK" to confirm.<br />

You should see the new "Cost" goal below the "Buy the Best<br />

Truck" goal in the Goals Hierarchy window.<br />

Now we will add the "Resale Value" measure.<br />

1. In the Goals Hierarchy view, click on the "Cost" goal to<br />

select it.<br />

2. Click the Add a Measure button and click "OK".<br />

3. In the measure dialog box, change the name to “Resale<br />

Value.”<br />

4. Click on the “Scale” tab.<br />

5. Change the units to “percent of original purchase price”<br />

6. Change the Most Preferred Level to 75.<br />

7. Change the Least Preferred Level to 45<br />

8. Click “OK”<br />

5-4 Section 5 -- Advanced Tutorial

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