A company desires to locate a new facility. Based on preliminary analysis, the choice has been reduced to four locations: A, B, C, and D. These four locations were rated on a scale from 1 worst to 10 best on each of four criteria. Each criterion was also weighted to indicate its importance (i.e., the higher the weight, the more important). The list of ratings and weights follows. Factor Score Evaluation by Location $$\begin{array} { | l | l | l | l | l | l | }
\hline \text { Criterion } & \text { W eight } & \text { A } & \text { B } & C & D \
\hline \text { Wages } & 40 & 4 & 5 & 3 & 7 \
\hline \text { State Govt. P olicies } & 30 & 8 & 5 & 7 & 5 \
\text { Unionism } & 20 & 3 & 4 & 3 & 2 \
\text { Weather } & 10 & 7 & 3 & 6 & 4 \
\hline
\end{array}$$ Based on weighted scores, where should the company locate its new facilities?
A) A
B) B
C) C
D) D

Question

A company desires to locate a new facility. Based on preliminary analysis, the choice has been reduced to four locations: A, B, C, and D. These four locations were rated on a scale from 1 worst to 10 best on each of four criteria. Each criterion was also weighted to indicate its importance (i.e., the higher the weight, the more important). The list of ratings and weights follows. Factor Score Evaluation by Location $$\begin{array} { | l | l | l | l | l | l | } 
\hline \text { Criterion } & \text { W eight } & \text { A } & \text { B } & C & D \
\hline \text { Wages } & 40 & 4 & 5 & 3 & 7 \
\hline \text { State Govt. P olicies } & 30 & 8 & 5 & 7 & 5 \
\text { Unionism } & 20 & 3 & 4 & 3 & 2 \
\text { Weather } & 10 & 7 & 3 & 6 & 4 \
\hline
\end{array}$$ Based on weighted scores, where should the company locate its new facilities?
A) A
B) B
C) C
D) D

Quizplus · Accepted Answer

The weighted score for each location is:A: (4*40) + (8*30) + (3*20) + (7*10) = 320B: (5*40) + (5*30) + (4*20) + (3*10) = 290C: (3*40) + (7*30) + (3*20) + (6*10) = 280D: (7*40) + (5*30) + (2*20) + (4*10) = 350Therefore, the company should locate its new facility at location D.

A Company Desires to Locate a New Facility Based on Weighted Scores, Where Should the Company Locate Its