City Decision Criterion Weight Shanghai Hong Kong Singapore Political stability Economic growth Port facilities Container support Land construction cost 0.25 50 60 90 0.18 90 70 75 0.15 60 95 90 0.10 50 80 90 0.08 90 20 30 Transportation/distribution 0.08 50 80 70 Duties and tariffs 0.07 70 90 90 Trade regulations 0.05 70 95 95 Airline service 0.02 80 70 Area roads 0.02 60 70 80

Practical Management Science
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Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Exotech Computers manufactures computer components such as chips, circuit boards, motherboards,
keyboards, LCD panels, and the like, and sells them around the world. It wants to construct
a new warehouse and distribution center in Asia to serve emerging markets there. It has
identified sites in Shanghai, Hong Kong, and Singapore and has graded the important weighted
decision criteria for each site as follows: Recommend a site based on these decision criteria and grades. 

City
Decision Criterion
Weight
Shanghai
Hong Kong
Singapore
Political stability
Economic growth
Port facilities
Container support
Land construction cost
0.25
50
60
90
0.18
90
70
75
0.15
60
95
90
0.10
50
80
90
0.08
90
20
30
Transportation/distribution
0.08
50
80
70
Duties and tariffs
0.07
70
90
90
Trade regulations
0.05
70
95
95
Airline service
0.02
80
70
Area roads
0.02
60
70
80
Transcribed Image Text:City Decision Criterion Weight Shanghai Hong Kong Singapore Political stability Economic growth Port facilities Container support Land construction cost 0.25 50 60 90 0.18 90 70 75 0.15 60 95 90 0.10 50 80 90 0.08 90 20 30 Transportation/distribution 0.08 50 80 70 Duties and tariffs 0.07 70 90 90 Trade regulations 0.05 70 95 95 Airline service 0.02 80 70 Area roads 0.02 60 70 80
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