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    Location of a new warehouse/ distribution center

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    Exotech computers manufactures computer components such as chips, circuit boards, motherboards, keyboards, LCD panels and the like and sells tham around the world. It wants to construct a new warehouse/ distribution center in Asia to serve emerging Asian markets. It has identified sites in Shanghai, Hong Kong and Singapore and has rated the important location factors for each site as follows:

    Weight Shanghai Hong Kong Singapore
    Location factor
    Political stability 0.25 50 80 90
    Economic growth 0.18 90 50 75
    Port facilities 0.15 60 95 90
    Support 0.1 50 80 90
    Land and construction cost 0.08 90 50 30
    Transportation / Distribution 0.08 50 80 70
    Tariffs 0.07 70 90 90
    Trade regulation 0.05 70 95 95
    Airline service 0.02 60 80 70
    Roads 0.02 60 70 80

    Recommend a site based on these location factors and ratings. Please work in a spreadsheet to document calculations.

    This is from the text Book " Operations Management, 5th Edition", Russell & Taylor, Wiley, 2006, Supplement 7 - Operational Decision-Making Tools: Facility Location Models.

    See attached file for full problem description.

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    https://brainmass.com/business/business-management/location-of-a-new-warehouse-distribution-center-121627

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    Solution Summary

    Recommends a site based on location factors and ratings.

    $2.19

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