The point has been reached where a biotechnology research and development company must expand by building a new facility.The search has been narrowed to four locations,all of which are acceptable to management.The assessment of these sites is being made on the basis of the six subjective location factors that follow.Management has agreed to use a five-point scale (Excellent = 5,Very good = 4,Good = 3,Fair = 2,Poor = 1)to quantify and compare their subjective opinions about the relative goodness of the sites.The weight reflects the importance of each factor in the decision. Calculate the weighted score for each alternative.Which location would you recommend?
A)A
B)B
C)C

Question

The point has been reached where a biotechnology research and development company must expand by building a new facility.The search has been narrowed to four locations,all of which are acceptable to management.The assessment of these sites is being made on the basis of the six subjective location factors that follow.Management has agreed to use a five-point scale (Excellent = 5,Very good = 4,Good = 3,Fair = 2,Poor = 1)to quantify and compare their subjective opinions about the relative goodness of the sites.The weight reflects the importance of each factor in the decision.  Calculate the weighted score for each alternative.Which location would you recommend?
A)A 
B)B 
C)C

Quizplus · Accepted Answer

The weighted scores for each alternative are as follows:

A:
Factor 1: 3 x 0.15 = 0.45
Factor 2: 2 x 0.20 = 0.40
Factor 3: 5 x 0.25 = 1.25
Factor 4: 3 x 0.15 = 0.45
Factor 5: 4 x 0.15 = 0.60
Factor 6: 2 x 0.10 = 0.20
Total: 3.35

B:
Factor 1: 4 x 0.15 = 0.60
Factor 2: 4 x 0.20 = 0.80
Factor 3: 4 x 0.25 = 1.00
Factor 4: 4 x 0.15 = 0.60
Factor 5: 3 x 0.15 = 0.45
Factor 6: 3 x 0.10 = 0.30
Total: 3.75

C:
Factor 1: 5 x 0.15 = 0.75
Factor 2: 5 x 0.20 = 1.00
Factor 3: 3 x 0.25 = 0.75
Factor 4: 5 x 0.15 = 0.75
Factor 5: 5 x 0.15 = 0.75
Factor 6: 5 x 0.10 = 0.50
Total: 4.50

D:
Factor 1: 2 x 0.15 = 0.30
Factor 2: 3 x 0.20 = 0.60
Factor 3: 2 x 0.25 = 0.50
Factor 4: 2 x 0.15 = 0.30
Factor 5: 2 x 0.15 = 0.30
Factor 6: 4 x 0.10 = 0.40
Total: 2.40

Based on the weighted scores, location C has the highest weighted score of 4.50, making it the best choice. Location B is a close second with a score of 3.75, but location C has higher scores for the more important factors of factors 1 and 2.

The Point Has Been Reached Where a Biotechnology Research and Development