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. The 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 Average variable cost per patient 25 18 20 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?

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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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. The 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
Average variable cost per patient		25	18	20