A Tema Oil Refinery (TOR) Ltd, must decide among three sites for the construction of a new oil storage facility. The firm has selected the six factors listed below in Table1 as a basis for evaluation and has assigned rating weights from 1 to 5 on each factor. Mr. Isaac Osei the Managing Director has rated each location for each factor on a 1 to 100-point basis. Table 1: Factor Description, Rating Weight and Location rating FACTOR FACTOR NAME RATING WEIGHT LOCATION A B C 1 Proximity to port facility 5 100 80 80 2 Power-source availability and cost 3 80 70 100 3 Workforce attitude and cost 4 30 60 70 4 Distance from Tema 2 10 80 60 5 Community desirability 2 90 60 80 6 Equipment suppliers in area 3 90 60 90 Requirements (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?
2. A Tema Oil Refinery (TOR) Ltd, must decide among three sites for the construction
of a new oil storage facility. The firm has selected the six factors listed below in
Table1 as a basis for evaluation and has assigned rating weights from 1 to 5 on each
factor. Mr. Isaac Osei the Managing Director has rated each location for each factor
on a 1 to 100-point basis.
Table 1: Factor Description, Rating Weight and Location rating
FACTOR FACTOR NAME RATING WEIGHT LOCATION
A B C
1 Proximity to port facility 5 100 80 80
2 Power-source availability and cost 3 80 70 100
3 Workforce attitude and cost 4 30 60 70
4 Distance from Tema 2 10 80 60
5 Community desirability 2 90 60 80
6 Equipment suppliers in area 3 90 60 90
Requirements
(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?
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