A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below:
If the selection criterion is to be the greatest composite score, management should choose:
A) location A.
B) location B.
C) location C.
D) either location B or location C.
E) to reject all locations.

Question

A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below: 
If the selection criterion is to be the greatest composite score, management should choose:
A) location A. 
B) location B. 
C) location C. 
D) either location B or location C. 
E) to reject all locations.

Quizplus · Accepted Answer

To find the composite score, we need to multiply the weight of each factor with its respective score for each location and then sum up those values. By doing so, we get the following composite scores:
- Location A: (0.25*45) + (0.3*70) + (0.15*60) + (0.3*80) = 34.25
- Location B: (0.35*60) + (0.25*50) + (0.2*80) + (0.2*70) = 54.5
- Location C: (0.4*70) + (0.2*40) + (0.35*70) + (0.05*50) = 55.5

Thus, the best choice(s) would be location B, as it has the highest composite score.

A Location Analysis Has Been Narrowed Down to Three Locations