Dynamic Decisions 1/3

Note: You can also read about paired comparison analysis at the following website:

http://www.mindtools.com/pages/main/newMN_TED.htm

Now, apply your understanding of the technique to the following scenario:

A company manufactures auto spare parts. The company employs 1500 workers in its two units. The management of the company wants to move the low technology, labor intensive part of its operation to Bangladesh to take advantage of the low cost of labor there. If the company moves its operations to Bangladesh, from both units, a total of 500 workers will lose their jobs. The expected cost saving is estimated to be $1 million in the first year and $2 million in subsequent years, for nine years.

Based on the paired comparison analysis of the scenario described above, create a 2- to 3-page report in a Microsoft Word document, that includes the following:

• An analysis and description of the two alternatives presented above—moving operations to Bangladesh and staying put at the current location.
• A comparison of the two alternatives taking into consideration the tradeoffs related to each of them.
• A proper structure of the problem based on the objectives and consequences for each alternative.
• Your opinion on the better option among the two alternatives and your reasons for selecting the same.

Support your responses with examples.

Cite any sources in APA format.