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1. Use a weighted scoring model to choose between three locations (A, B, C) for setting up a factory. The relative weights for each criterion are shown in the table in the attached file.
2. Nina is trying to decide in which of four shopping centers to locate her new boutique. Some cater to a higher class of clientele than others, some are in an indoor mall, some have a much greater volume than others, and, of course, rent varies considerably. Because of the nature of her store, she has decided that the class of clientele is the most important consideration. Following this, however, she must pay attention to her expenses, and rent is a major item-probably 90 percent as important as clientele. An indoor, temper¬ature-controlled mall is a big help for stores such as hers where 70 percent of sales are from passersby slowly strolling and window shopping. Thus, she rates this as about 95 percent as important as rent. Last, a higher volume of shoppers means more potential sales; she thus rates this factor as 80 percent as important as rent. Use a weighted score model to help Nina come to a decision. (See attached file for data)
Solution is attached.
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1. Use a weighted scoring model to choose between three locations (A, B, C) for setting up a factory. The relative weights for each criterion are shown in the following table.
A score of 1 represents unfavorable, 2 satisfactory, and 3 favorable.
Category Weight A B C
Labor costs 20 1 2 3
Labor productivity 20 2 3 1
Labor supply 10 2 1 3
Union relations 10 3 3 2
Material supply 10 2 1 1
Transport costs 25 1 2 3
Infrastructure 5 2 2 2
Weighted score of Location A=(20*1+20*2+10*2+10*3+10*2+25*1+5*2)/(20+20+10+10+10+25+5)= 1.65
Weighted score of Location B=(20*2+20*3+10*1+10*3+10*1+25*2+5*2)/(20+20+10+10+10+25+5)= ...
The weighted scoring model is examined.