A manufacturing firm is considering three potential locations for a new parts manufacturing facility. A consulting firm has assessed three sites based on the four factors supplied by management as critical to the location's success
Given the management-supplied factor weights and the consultant team scores, which location should be selected? Scores are based on 50 = best.
Location
Factor Weight A B C
Labor Climate 10 35 45 20
Taxes 30 30 40 40
Utilities 20 25 20 45
Wages 40 10 25 25
C is clearly better than either A or B. This problem illustrates the importance of having good scores on important factors. B has scores that sum to the same amount as those of C, but they are in the wrong places.
Factor Weight A B C
Labor Climate 10 35 45 20
Taxes 30 30 40 40
Utilities 20 25 20 45
Wages 40 10 25 25
Total 100
Weighted sum 2150 3050 3300
Weighted average 21.5 30.5 33.0
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