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Choosing the suitable location

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A manufacturer's research and development center must expand by building a new facility. The search has been narrowed to five locations, all of which are acceptable to management. The assessment of these sites is being made on the basis of the five subjective location factors that follow. Management has agreed to use a five-point scale (Excellent = 5, and Poor = 1) to quantify and compare their subjective opinions about the relative goodness of the sites. The weight reflects the importance of each factor in the decision.
Factor Weight A B C D E
Labor climate 30 4 2 1 4 2
Proximity to markets 30 5 3 3 4 4
Quality of life 15 1 3 2 4 5
Proximity to suppliers 15 2 5 3 3 3
Taxes 10 3 4 4 1 5

Calculate the weighted score for each alternative. Which location would you recommend? Why?

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Solution Summary

Solution calculates the weighted score for each of given locations and selects the suitable location.

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Weighted score=summation of (weight of factor*Score for the factor)/total weight

Weighted score for Location ...

Solution provided by:
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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