A company is considering Denver, Seattle, and Portland as candidate locations for a new facility.For the weighted-factor rating technique, the company is evaluating each location on three factors (distance to customers, labor costs, and utility costs).The factors are weighted 0.5, 0.3, and 0.2, respectively.Denver received scores of 90, 77, and 65 for the three factors.Seattle received scores of 87, 82, and 70.Portland received scores of 84, 86, and 75.Which of the three cities is ranked second by the weighted-factor rating technique?
A) Denver
B) Seattle
C) Portland
D) All sites are equally attractive

Question

Quizplus · Accepted Answer

To determine the ranking by the weighted-factor rating technique, we need to calculate the weighted score for each location:
Denver: (0.5 x 90) + (0.3 x 77) + (0.2 x 65) = 82.4
Seattle: (0.5 x 87) + (0.3 x 82) + (0.2 x 70) = 81.1
Portland: (0.5 x 84) + (0.3 x 86) + (0.2 x 75) = 82.2
Therefore, the ranking from highest to lowest is Denver, Portland, and Seattle. Therefore, Seattle is ranked second.

A Company Is Considering Denver, Seattle, and Portland as Candidate