4.8 We Rescue, Inc., a firm providing nationwide ambulance services, intends to expand its service range through a new branch in the suburbs of the mid-Atlantic region. Th e data were gathered to evaluate three different possible sites, Suburb A, Suburb B, and Suburb C, for the new location. The data include factor ratings, minimum satisfactory level, and importance rankings of each factor (attribute), as shown in Table EX 4.8.
4.8 We Rescue, Inc., a firm providing nationwide ambulance services, intends to expand its service range through a new branch in the suburbs of the mid-Atlantic region. Th e data were gathered to evaluate three different possible sites, Suburb A, Suburb B, and Suburb C, for the new location. The data include factor ratings, minimum satisfactory level, and importance rankings of each factor (attribute), as shown in Table EX 4.8.
|
Attribute (factor) |
Weight |
Suburb A |
Suburb B |
Suburb C |
Satisfaction level |
Importance Ranking |
|
Contracting and Land Cost |
0.1 |
65* |
76 |
45 |
70 |
3 |
|
Labor Availability and cost |
0.15 |
50 |
65 |
60 |
65 |
5 |
|
Transportation and road network |
0.15 |
60 |
70 |
75 |
80 |
4 |
|
Supplier/ Support Service companies |
0.13 |
75 |
60 |
65 |
85 |
6 |
|
Average time per Emergency trip |
0.22 |
95 |
75 |
70 |
95 |
2 |
|
Accessibility to hospital |
0.18 |
85 |
80 |
65 |
90 |
1 |
|
Employee preference |
0.07 |
60 |
50 |
55 |
75 |
7 |
|
Total |
1.00 |
|
|
|
|
|
|
Average revenue per patient visit |
|
50 |
40 |
45 |
|
|
|
Patient volume |
|
20,000 |
20,000 |
20,000 |
|
|
|
Fixed cost |
|
200,000 |
300,000 |
250,000 |
|
|
|
|
|
25 |
18 |
20 |
|
|
- Decide which location should be chosen for a new ambulance service on the basis of the alternatives’ maximum composite score.
- Determine whether any location dominates the others.
- Choose a location based on the minimum attribute satisfaction procedure alone.
- Choose a location based on the most important attribute procedure alone.
- Choose a location based on cost-volume analysis.
- After all the analyses above, which location would you support, and why?
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