Why do decision factors contain decimal points?

Question

Hi! Why do decision factors in the solution contain decimal points? I would have just used the one given in the exhibit: 1 - low, 2 - medium and 3 -high.

Answer 1

Hi Regina,

you have to consider the additional information and multiple the decision factor by it:

Solution given assumes following decision factors:
Qualitative – 0.3
Quantitative – 0.2
Cost – 0.5

e.g., digital capability for supplier A is medium (2) → 2x 0.3 (0.3 because it is a qualitative factor) = 0.6 (as shown in the solution)

Hope that helps

Best

Holger

Answer 2

Hi Regina,

I see Holger already provided a clarification to your questions.

If you're practising case maths, you might also find this guide useful:

Cheatsheet: The Must-Know Consulting Terms for Interviews

Best,
Cristian

Answer 3

The specific weights of each decision factor would be given by the interviewer.

In reality the expectation is that you recognize you need those decision factors and need to “weight” them in order to reach a final decision. But, regarding the specific weights, either you assume them or the interviewer provides them (both options would be fine in the context of an interview)

Answer 4

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Answer 5

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Answer 6

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