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A. The problem faced by the students concerning their needs is to fulfill their hunger by ordering a
fresh pizza. However, they do not have the time to pick up the pizza by themselves so they opted
to order them by delivery. They will have to choose from two different restaurants that offer pizzas
but with different options and prices.
B. Principle 1 (Develop the Alternatives)
Option 1: Order a pizza from Pick-Up-Sticks
Option 2: Order a pizza from Fred’s
Principle 2 (Focus on the Differences)
The two restaurants will differ in the quality and amount of the ingredients used in the pizza like
the thickness and toppings. Delivery time and prices also differs especially Fred’s restaurant
which offers free delivery.
Principle 3 (Use a consistent Viewpoint)
The perspective or viewpoint that will be used in this will mainly focus on one subject which is the
customers looking for a good deal which give them better quality of pizza with a reasonable price.
Principle 4 (Use a Common Unit of Measure)
The Common Unit of Measure we are going to use is Peso for identifying the cost between the
two restaurants. Since we are looking for getting the best value of pizza by minimizing its cost, we
are going to use per unit volume.
Principle 5 (Consider all Relevant Criteria)
The main criterion that we are going to use to evaluate which one of the restaurant we are going
to get is the cost or price in Peso.
The second one is quality and range of the ingredients used like the toppings and the size of the
pizza.
The third one is the delivery time, which one of the two restaurants will have a reasonable price in
the delivery in terms of the quality and price of the pizza.
Principle 6 (Make Uncertainty Explicit)
In making a decision in which restaurant to choose, each of the criterion listed should be
examined and analyzed carefully to choose which one will serve the best pizza for the least
amount of price.
Principle 7 (Revisiting your Decision)
After you made a decision of which restaurant to order, you must consider all of the criterion
satisfied your expectation like how did it satisfy your cravings or was the pizza worth the price and
you paid for?, or was the delivery in time or enough for the students to eat before the exam.
C.
To calculate the cost per unit volume, you must consider the size and volume of the pizza by
calculating the total volume in inch^3 and the total cost which will be the cost of delivery and the sales tax
added in the price of the pizza. Then finally the cost per inches^3 which the total cost will be divided to the
volume of the pizza.
D.
Other criteria the may be included are, the cost
2.
a. Define the Problem
The problem is finding a newly designed drill bit that will be cost efficient and reliable machine.
b. Assumptions:
The previous employee’s information about the old turning machine are accurate.
The old turning machine in the warehouse is functional.
Since the in house technicians’ have never done any kinds of modification in this kind of
turning machine, they should be able to do the job regardless.
The estimation of the price in both machine (in house technicians and McDonalds) is
correct.
Both of the machine should have the same kind of basic functionality.
c. Alternatives:
Modify the old turning machine in the ware house which has an estimated value of 350,
000 for 40 000.
Let McDonald’s modify the old machine for the price of 60,000 .
Buy a new Machine from McDonalds’ with higher capacity and better modification with
the price of 450, 000.
d. Criterion
Which one of the machines will cost less but will perform well given its price. It should
have decent quality and can perform its job. The delivery time should also be before than the start
up date.
e. Risks
The old modified machine will perform poorly than expected. The machine is not
environmentally safe so it would cause environmental hazards which should be
dangerous to use
f. Non monetary considerations
The environmental safety, quality and functionalities of the machine, delivery time before
the start up date, and the reputation of your own company.
