### Site Selection for Pan American RefineriesPan American Refineries, headquartered in Houston, is evaluating three potential sites for constructing a new oil processing center. The decision process involves assessing six key factors, each assigned a different rating weight from 1 to 5. These factors and their weights are:| **Factor** | **Factor Name** | **Rating Weight** ||------------|-----------------------------------|-------------------|| 1 | Proximity to port facilities | 5 || 2 | Power-source availability and cost| 3 || 3 | Workforce attitude and cost | 4 || 4 | Distance from Houston | 2 || 5 | Community desirability | 2 || 6 | Equipment suppliers in area | 3 |**Location Ratings**Subhajit Chakraborty, the CEO, provided ratings for each location based on each factor (scores from 1 to 100):| **Factor** | **Location A** | **Location B** | **Location C** ||------------|----------------|----------------|----------------|| 1 | 100 | 80 | 80 || 2 | 80 | 70 | 100 || 3 | 30 | 60 | 70 || 4 | 10 | 80 | 80 || 5 | 10 | 80 | 90 || 6 | 50 | 60 | 90 |**Questions**a) **Which site will be recommended based on total weighted scores?**b) **If location B’s score for Proximity to port facilities was reset to 90, how would the result change?**c) **What score would location B need on Proximity to port facilities to change its ranking?**This evaluation involves calculating the total weighted scores based on the given ratings and weights to determine the best location for the new center.

(a) Based on the weighted score, Location C is recommended. (b) If Factor 1 for B changes to 90,…

Answered: ...8.10 Pan American Refineries,…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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3. Consolidated Refineries, headquartered in Houston, must decide among three sites for the construction of a new oil-processing center. The firm has selected the six factors listed below as a basis for evaluation and has assigned rating weights from 1 to 5 on each factor: Factor 1 2 3 4 5 6 Factor Name Proximity to port facilities Power source availability and cost Workforce attitude and cost Distance from Houston Community desirability Equipment suppliers in area Rating Weight 5 3 4 2 2 3 Management has rated each location for each factor on a 1- to 100-point basis. Factor Location A Location B Location C 1 100 80 80 2 80 70 100 3 30 60 70 4 10 80 60 5 90 60 80 6 50 60 90 a. Which site will be recommended based on total weighted scores? b. If location B's score for Proximity to port facilities was reset at 90, how would the result change? c. What score would location B need on Proximity to port facilities to change its ranking?
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