Tommy's Family Furniture is looking for a new supplier for its armchairs. Tommy is primarily interested in only two criterion: price and name brand value. He considers the value of the name brand to be three times more important than price. Tommy has narrowed his choices to two suppliers. On a 10-point scale, he has assigned Amy's Armchairs a score of 8 on price and 5 on name brand value. He has assigned Annie's Armchairs a score of 3 on price and 6 on name brand value. Apply the factor weighting technique to help Tommy choose a new armchair supplier.

To determine the appropriate weights for each category, create a simple algebraic relationship.
Let X = the weight for criterion 1.
Then X + 3X = 100%, i.e., 4X = 1, or X = 0.25 = 25%. Thus, price has a weight of 25%, and name brand value has a weight of 3(25%) = 75%.
The total score for Amy's Armchairs = 8(0.25) + 5(0.75) = 2.0 + 3.75 = 5.75
The total score for Annie's Armchairs = 3(0.25) + 6(0.75) = 0.75 + 4.5 = 5.25
Despite a lower score on the more important criterion, the difference in price attractiveness was enough to give Amy's Armchairs the highest score. Thus, Amy's Armchairs should be selected.