Problem 12 . Arsenal Electronics is going to construct a new $1.2 billion semico
ID: 471847 • Letter: P
Question
Problem 12.
Arsenal Electronics is going to construct a new $1.2 billion semiconductor plant and has selected four towns in the Midwest as potential sites. The important location factors and ratings for each town are as follows:
Scores (0 to 100)
Location Factor
Weight
Abbeton
Bayside
Cane Creek
Dunnville
Work ethics
0.18
80
90
70
75
Quality of life
0.16
75
85
95
90
Labor laws/unionization
0.12
90
60
60
70
Infrastructure
0.10
60
50
60
70
Education
0.08
80
90
85
95
Labor skill and education
0.07
75
65
70
80
Cost of living
0.06
70
80
85
75
Taxes
0.05
65
70
55
60
Incentive package
0.05
90
95
70
80
Government regulations
0.03
40
50
65
55
Environmental regulations
0.03
65
60
70
80
Transportation
0.03
90
80
95
80
Space for expansion
0.02
90
95
90
90
Urban proximity
0.02
60
90
70
80
Recommend a site based on these location factors and ratings.
Scores (0 to 100)
Location Factor
Weight
Abbeton
Bayside
Cane Creek
Dunnville
Work ethics
0.18
80
90
70
75
Quality of life
0.16
75
85
95
90
Labor laws/unionization
0.12
90
60
60
70
Infrastructure
0.10
60
50
60
70
Education
0.08
80
90
85
95
Labor skill and education
0.07
75
65
70
80
Cost of living
0.06
70
80
85
75
Taxes
0.05
65
70
55
60
Incentive package
0.05
90
95
70
80
Government regulations
0.03
40
50
65
55
Environmental regulations
0.03
65
60
70
80
Transportation
0.03
90
80
95
80
Space for expansion
0.02
90
95
90
90
Urban proximity
0.02
60
90
70
80
Explanation / Answer
The site with the highest total weighted score (sum of all weighted score) will be selected.
Wighted score = score*weight.
Dunnville has the highest total wieghted score of 77.85. Hence it should be selected as the site.
Location Factor Weight Abbeton Bayside Cane Creek Dunnville weight*score Work ethics 0.18 14.4 16.2 12.6 13.5 Quality of life 0.16 12 13.6 15.2 14.4 Labor laws/unionization 0.12 10.8 7.2 7.2 8.4 Infrastructure 0.1 6 5 6 7 Education 0.08 6.4 7.2 6.8 7.6 Labor skill and education 0.07 5.25 4.55 4.9 5.6 Cost of living 0.06 4.2 4.8 5.1 4.5 Taxes 0.05 3.25 3.5 2.75 3 Incentive package 0.05 4.5 4.75 3.5 4 Government regulations 0.03 1.2 1.5 1.95 1.65 Environmental regulations 0.03 1.95 1.8 2.1 2.4 Transportation 0.03 2.7 2.4 2.85 2.4 Space for expansion 0.02 1.8 1.9 1.8 1.8 Urban proximity 0.02 1.2 1.8 1.4 1.6 Total 1 75.65 76.2 74.15 77.85