A company is considering Pittsburgh, Philadelphia, and Baltimore 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. Pittsburgh received scores of 90, 75, and 65 for the three factors. Philadelphia received scores of 85, 82, and 70. Baltimore received scores of 82, 85, and 75. Which of the three cities is ranked second by the weighted-factor rating technique?
A) Pittsburgh
B) Philadelphia
C) Baltimore
D) Cannot be determined from the information given

Question

Quizplus · Accepted Answer

To determine the total score for each city, we multiply each factor score by its weight, then sum the products. For Pittsburgh, the total score is (0.5 x 90) + (0.3 x 75) + (0.2 x 65) = 45 + 22.5 + 13 = 80.5. For Philadelphia, the total score is (0.5 x 85) + (0.3 x 82) + (0.2 x 70) = 42.5 + 24.6 + 14 = 81.1. For Baltimore, the total score is (0.5 x 82) + (0.3 x 85) + (0.2 x 75) = 41 + 25.5 + 15 = 81.5. Therefore, Baltimore has the highest score and is ranked first, and Philadelphia has the second highest score and is ranked second. Therefore, the answer is B.

A Company Is Considering Pittsburgh, Philadelphia, and Baltimore as Candidate