criteria

cost
quality
turnarou
nd
total

In
house
400

privatizati
on
500

coun
ty
300

low
45

medium
60

high
30

445

560

330

Tota
l
120
0
135
133
5

1. Expected value Table

Here we have the expected value table for three alternatives of production
which we have prepared for two options: for cost and for turnaround.
Total cost in house (simple + turnaround cost) = $400 + $45 = $445
Also total cost for all options = $1335
Now for finding out expected value of each option we have to divide cost
(which is $1200 in total) into three parts into the proportions like this:
Expected value for cost in in-house = 1200*445/1335 =400
For privatization =1200*560/1335 =503.37
For county =1200*330/1335 =296.63

alternati
ve
cost
turnarou
nd

low
Inhouse
400

medium
privatizati
on
503.37

45

56.63

high
count
y
296.
63
33.3
7

2. Weighted score table

Weighted score table can be prepared by multiplying the scores by their
respective weights.

In-house Privatization County

Criteria/

Total

scor

W.

scor

W.

scor

W.

score
cost

score
20

e
10

Quality
turnaround

10
10

5
5

Total

40

S
20
0
50
50

e
5
5
10

40
0

S
10
0
50
10
0
25
0

e
10
5
5

S
20
0
50
50
30
0

W.S is the weighted score

W.S for cost in in-house =20*10 =200
Privatization =20*5 =100
County =20*10 =200
This formula applies to both quality and turnaround and the table can be prepared.
Therefore weighted score table will be;
Criteria/
alternative
cost
quality
turnaround
total

Inhouse
200
50
50
400

privatizati
on
100
50
100
250

count
y
200
50
50
300

3. Break even analysis

The break even analysis can be done by multiplying the total cost of the
alternatives by their respective occurrences.
At break even the alternatives will have equal chances of occurrence which is
1/3

Criteria
cost
Turn
around
quality
Therefore,

Inhouse
300

privatizati
on
300

coun
ty
400

30

40

30

low

medium

high

tota
l
100
0
100

For in house: total cost = 330

Therefore, Breakeven in-house = 330*(1/3) =110
Break even Privatization = 340*(1/3) =113.33
And break even County = 430*(1/3) =143.33