i like to have numbers for management to base a decision on. sometimes this is easy (just hand them a dollar figure), other times it is not. i came around to weighted averages for the simple reason that i wanted to prove, with numbers, that just because an option is cheaper, that doesn’t mean its better. let me explain.
in the process of evaluating 3 different vendors as a replacement product, say you pick out 5 criteria to base them on. for my purposes, i throw this in a spread sheet and then i grade each vendor on how i think they do for each criteria (which is subjective, of course). for an example, see the screen shot below:
very quickly you can see that it is almost a dead heat between vendor x and y, and vendor z is out of the mix, right?