The EU has made changes in airline regulation that dramatically affect major European carriers such as British International Air (BIA), KLM, Air France, Alitalia, and Swiss International Air. With ambitious expansion plans, BIA has decided it needs a second service hub on the continent, to complement its large Heathrow (London) repair facility. The location selection is critical, and with the potential for 4,000 new skilled blue-collar jobs on the line, virtually every city in western Europe is actively bidding for BIA's business. After initial investigations by Holmes Miller, head of the Operations Department, BIA has narrowed the list to 9 cities. Each is then rated on 12 factors, as shown in the table below. a) Help Miller rank the top three cities that BIA should consider as its new site for servicing aircraft. b) After further investigation, Miller decides that an existing set of hangar facilities for repairs is not nearly as important as earlier thought. If he lowers the weight of that factor to 30, does the ranking change? c) After Miller makes the change in part (b), Germany announces it has reconsidered its offer of financial incentives, with an additional 200-million-euro package to entice BIA. Accordingly, BIA has raised Germany's rating to 10 on that factor. Is there any change in top rankings in part (b)? DATA FOR PROBLEM 8.25 LOCATION FRANCE ITALY GERMANY FACTOR IMPORTANCE WEIGHT MILAN ROME GENOA PARIS LYON NICE MUNICH BONN Financial incentives 85 8 8 8 7 7 7 7 7 Skilled labor pool 80 4 6 5 9 9 7 10 8 Existing facility 70 3 5 9 9 Wage rates 70 8 4 6 6 4 5 Competition for jobs 70 3 2 8 7 4 Ease of air traffic access 65 4 8 8 4 8 4 6 6 3 4 Real estate cost Communication links 7 9 9 9 Attractiveness to relocating executives 8 3 8 8 Political considerations Expansion possibilities 5 5 Union strength 5 6 40 25 15 10 10 10 5 975660 4 6 10 1 1690 2 298 6 7 6 m1000 - 3 6 8 2 9 9 8 1 5 10 6845 2004 8 6 BERLIN 7 9 2 5 9 5 8 3 8 6 6
The EU has made changes in airline regulation that dramatically affect major European carriers such as British International Air (BIA), KLM, Air France, Alitalia, and Swiss International Air. With ambitious expansion plans, BIA has decided it needs a second service hub on the continent, to complement its large Heathrow (London) repair facility. The location selection is critical, and with the potential for 4,000 new skilled blue-collar jobs on the line, virtually every city in western Europe is actively bidding for BIA's business. After initial investigations by Holmes Miller, head of the Operations Department, BIA has narrowed the list to 9 cities. Each is then rated on 12 factors, as shown in the table below. a) Help Miller rank the top three cities that BIA should consider as its new site for servicing aircraft. b) After further investigation, Miller decides that an existing set of hangar facilities for repairs is not nearly as important as earlier thought. If he lowers the weight of that factor to 30, does the ranking change? c) After Miller makes the change in part (b), Germany announces it has reconsidered its offer of financial incentives, with an additional 200-million-euro package to entice BIA. Accordingly, BIA has raised Germany's rating to 10 on that factor. Is there any change in top rankings in part (b)? DATA FOR PROBLEM 8.25 LOCATION FRANCE ITALY GERMANY FACTOR IMPORTANCE WEIGHT MILAN ROME GENOA PARIS LYON NICE MUNICH BONN Financial incentives 85 8 8 8 7 7 7 7 7 Skilled labor pool 80 4 6 5 9 9 7 10 8 Existing facility 70 3 5 9 9 Wage rates 70 8 4 6 6 4 5 Competition for jobs 70 3 2 8 7 4 Ease of air traffic access 65 4 8 8 4 8 4 6 6 3 4 Real estate cost Communication links 7 9 9 9 Attractiveness to relocating executives 8 3 8 8 Political considerations Expansion possibilities 5 5 Union strength 5 6 40 25 15 10 10 10 5 975660 4 6 10 1 1690 2 298 6 7 6 m1000 - 3 6 8 2 9 9 8 1 5 10 6845 2004 8 6 BERLIN 7 9 2 5 9 5 8 3 8 6 6
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Transcribed Image Text:8.25
The EU has made changes in airline regulation that dramatically affect major European carriers such as
British International Air (BIA), KLM, Air France, Alitalia, and Swiss International Air. With ambitious
expansion plans, BIA has decided it needs a second service hub on the continent, to goMrlE=ment its
large Heathrow (London) repair facility. The location selection is critical, and with the potential for 4,000
new skilled blue-collar jobs on the line, virtually every city in western Europe is actively bidding for BIA's
business.
After initial investigations by Holmes Miller, head of the Operations Department, BIA has
narrowed the list to 9 cities. Each is then rated on 12 factors, as shown in the table below.
a) Help Miller rank the top three cities that BIA should consider as its new site for servicing aircraft.
b) After further investigation, Miller decides that an existing set of hangar facilities for repairs is not
nearly as important as earlier thought. If he lowers the weight of that factor to 30, does the ranking
change?
c) After Miller makes the change in part (b), Germany announces it has reconsidered its offer of financial
incentives, with an additional 200-million-euro package to entice BIA. Accordingly, BIA has raised
Germany's rating to 10 on that factor. Is there any change in top rankings in part (b)?
DATA FOR PROBLEМ в 25
LOCATION
ITALY
FRANCE
GERMANY
IMPORTANCE
WEIGHT
FACTOR
MILAN
ROME
GENOA
PARIS
LYON
NICE
MUNICH
BONN
BERLIN
Financial incentives
85
8
8
7
Skilled labor pool
80
9
9
7
10
Existing facility
70
3
Wage rates
70
9
4
6.
4
Competition for jobs
70
7.
4
Ease of air traffic access
65
4
8
4
8
Real estate cost
40
4
6
3
4
Communication links
25
6.
10
Attractiveness to relocating
executives
15
4
6.
6.
2
Political considerations
10
6.
6
Expansion possibilities
Union strength
10
10
2
8
1
5
4
10
1
5
6
6
25
9650
700
22
N90 76
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