Problem 6 SHOW ALL WORK IN DETAIL Chapter 13: A manufacturer’s research and deve
ID: 3151952 • Letter: P
Question
Problem 6 SHOW ALL WORK IN DETAIL
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
Solution :
Location A is best with a score of 3.55.
Reference : Locating a Single facility
Difficulty : Moderate
Keywords : location factors, preference matrix, weighted score
AACSB : Analytic skills