Marilyn Helm Retailers is attempting to decide on alocation for a new retail outlet. At the moment, the firm has threealternatives—stay where it is but enlarge the facility; locate alongthe main street in nearby Newbury; or locate in a new shoppingmall in Hyde Park. The company has selected the four factorslisted in the following table as the basis for evaluation and hasassigned weights as shown:FACTOR FACTOR DESCRIPTION WEIGHT1 Average community income .302 Community growth potential .153 Availability of public transportation .204 Labor availability, attitude, and cost .35Helm has rated each location for each factor, on a 100-pointbasis. These ratings are given below:LOCATION FACTOR PRESENT LOCATION NEWBURY HYDE PARK1 40 60 502 20 20 803 30 60 504 80 50 50a) What should Helm do?b) A new subway station is scheduled to open across the street fromthe present location in about a month, so its third factor scoreshould be raised to 40. How does this change your answer?
Marilyn Helm Retailers is attempting to decide on a
location for a new retail outlet. At the moment, the firm has three
alternatives—stay where it is but enlarge the facility; locate along
the main street in nearby Newbury; or locate in a new shopping
mall in Hyde Park. The company has selected the four factors
listed in the following table as the basis for evaluation and has
assigned weights as shown:
FACTOR FACTOR DESCRIPTION WEIGHT
1 Average community income .30
2 Community growth potential .15
3 Availability of public transportation .20
4 Labor availability, attitude, and cost .35
Helm has rated each location for each factor, on a 100-point
basis. These ratings are given below:
LOCATION
FACTOR PRESENT LOCATION NEWBURY HYDE PARK
1 40 60 50
2 20 20 80
3 30 60 50
4 80 50 50
a) What should Helm do?
b) A new subway station is
the present location in about a month, so its third factor score
should be raised to 40. How does this change your answer?
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