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Factor rating method

The Bakers Dozen Restaurant is considering opening a new location. It has considered many factors and identified the ones that are most important. Two locations are being evaluated based on these factors, using factor rating. Each location has been evaluated relative to the factors on a 5-point scale. These numbers are shown here. Use factor rating to help the restaurant decide on the better location.

Factor Score at Each Location
Factor Factor Weight Location 1 Location 2

Proximity to customers 30 5 2
Proximity to competition 10 4 2
Proximity to labor supply 30 2 5
Transportation system 20 5 3
Quality of life 10 3 5

Using the procedure for factor rating, decide on the better location.

Location 1 is the preferred one.
Location 2 is the preferred one.
Neither location is better as the factor rating scores are the same.

Solution Preview

Let us find the weighted scores of all the locations.

Weighted score=summation of ...

Solution Summary

Solution depicts the steps to determine the better location by factor rating method.