Answered: TABLE FACTOR INFORMATION FOR…

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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Question

An electronics manufacturer must expand by building a second facility. The search is narrowed to four locations, all of which are acceptable to management in terms of dominant factors. Assessment of these sites in terms of seven location factors is shown in Table. For example, location A has a factor score of 5 (excellent) for labor climate; the weight for this factor (20) is the highest of any.
Calculate the weighted score for each location. Which location should be recommended?

TABLE
FACTOR INFORMATION FOR ELECTRONICS MANUFACTURER
Factor Score for Each Location
Location Factor
Factor Weight
A
B
1. Labor climate
20
5
4
4
2. Quality of life
16
2
4
1
3. Transportation system
16
3
4
3
2
4. Proximity to markets
14
4
5. Proximity to materials
12
3
4
6. Taxes
12
5
4
7. Utilities
10
4
3
3
3.
2.
2.
LO

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