Pan American Refineries, headquartered in Houston, must decide among three sites for the construction of a new oil-processing center. The firm has selected the six factors listed below as a basis for evaluation and has assigned rating weightsfrom 1 to 5 on each factor:FACTOR FACTOR NAME RATING WEIGHT1 Proximity to port facilities 52 Power-source availability and cost 33 Workforce attitude and cost 44 Distance from Houston 25 Community desirability 26 Equipment suppliers in area 3Subhajit Chakraborty, the CEO, has rated each location for eachfactor on a 1- to 100-point basis.FACTOR LOCATION A LOCATION B LOCATION C1 100 80 802 80 70 1003 30 60 704 10 80 605 90 60 806 50 60 90a) Which site will be recommended based on total weightedscores?b) If location B’s score for Proximity to port facilities was resetat 90, how would the result change? c) What score would location B need on Proximity to port facili-ties to change its ranking?
Pan American Refineries, headquartered in Houston,
must decide among three sites for the construction of a new oil-
processing center. The firm has selected the six factors listed
below as a basis for evaluation and has assigned rating weights
from 1 to 5 on each factor:
FACTOR FACTOR NAME RATING WEIGHT
1 Proximity to port facilities 5
2 Power-source availability and cost 3
3 Workforce attitude and cost 4
4 Distance from Houston 2
5 Community desirability 2
6 Equipment suppliers in area 3
Subhajit Chakraborty, the CEO, has rated each location for each
factor on a 1- to 100-point basis.
FACTOR LOCATION A LOCATION B LOCATION C
1 100 80 80
2 80 70 100
3 30 60 70
4 10 80 60
5 90 60 80
6 50 60 90
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?
c) What score would location B need on Proximity to port facili-
ties to change its ranking?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
