Problem 6 MUST SHOW ALL WORK IN FULL DETAIL TO SUPPORT ANSWERS Chapter 13: A man
ID: 2763567 • Letter: P
Question
Problem 6 MUST SHOW ALL WORK IN FULL DETAIL TO SUPPORT ANSWERS
Chapter 13: A manufacturer’s research and development center must expand by building a new facility. The search has been narrowed to five locations, all of which are acceptable to management. The assessment of these sites is being made on the basis of the five subjective location factors that follow. Management has agreed to use a five-point scale (Excellent = 5, and Poor = 1) to quantify and compare their subjective opinions about the relative goodness of the sites. The weight reflects the importance of each factor in the decision. Calculate the weighted score for each alternative. Which location would you recommend? Why?
Locations
Factor
Weight
A
B
C
D
E
Labor climate
30
4
2
4
5
3
Proximity to markets
25
4
3
5
4
3
Quality of life
20
1
3
4
3
2
Proximity to suppliers
15
2
5
2
3
3
Taxes
10
3
4
5
3
5
Locations
Factor
Weight
A
B
C
D
E
Labor climate
30
4
2
4
5
3
Proximity to markets
25
4
3
5
4
3
Quality of life
20
1
3
4
3
2
Proximity to suppliers
15
2
5
2
3
3
Taxes
10
3
4
5
3
5
Explanation / Answer
Location C is best with a score of 4.05
Locations Factor Weight A Weighted Score B Weighted Score C Weighted Score D Weighted Score E Weighted Score Labor climate 30% 4 1.2 2 0.6 4 1.2 5 1.5 3 0.9 Proximity to markets 25% 4 1 3 0.75 5 1.25 4 1 3 0.75 Quality of life 20% 1 0.2 3 0.6 4 0.8 3 0.6 2 0.4 Proximity to suppliers 15% 2 0.3 5 0.75 2 0.3 3 0.45 3 0.45 Taxes 10% 3 0.3 4 0.4 5 0.5 3 0.3 5 0.5 Weighted Score 3 3.1 4.05 3.85 3