Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 3

Suntrek, based in China, is a global supplier of denim jeans for apparel companies around the world. It purchases baled raw cotton from producers in the United States and then transports it to East Coast ports where it is loaded into containers and shipped to factories overseas where denim fabric and ultimately jeans are manufactured. Suntrek wants to build a major warehousing and distribution center at one of the overseas ports and is considering Shanghai, Saigon, and Karachi. The criteria it will use to select the location are building and operating costs, labor rates and availability, container and shipping availability, and location factors such as tariffs, available land, and government regulations and stability. Following are Suntrek's pairwise comparisons for the locations for each of its criterion and its pairwise comparison of the four criteria:




Using AHP, determine which port Suntrek should select and check the consistency of the pairwise comparison matrix for the criteria.