Question

A location analysis for Cook Controls, a small manufacturer of parts for high-technology cable systems, has been narrowed down to four locations. Cook will need to train assemblers, testers, and robotics maintainers in local training centers. Lori Cook, the president, has asked each potential site to offer training programs, tax breaks, and other industrial incentives. The critical factors, their weights, and the ratings for each location are shown in the following table. High scores represent favorable values.

                     Wight       A     B        C        D

Labor availability     .15                90         80            90             80

Technical school

quality                     .10                95         75            65             85

Operating cost         .30                80         85            95             85

Land and

construction cost     .15                      60         80            90             70

Industrial

incentives                .20                      90         75            85             60

Labor cost               .10                75         80            85             75

a) Compute the composite (weighted average) rating for each location.

b) Which site would you choose?

c) Would you reach the same conclusion if the weights for operating cost and labor cost were reversed? Recomputed   as necessary and explain.

Answer 1

a)

For weighted average we  Multiply weight for each factor and total the score for each location.

The composition ratings are 81.5 for AKRON, 80 for BILOXI , 87.5 for CARTHAGE , 76 for DENVER.

b)

I choose CARTHAGE because it has highest weighted average rating

c)

After reversing the weights The composition (weighted average) ratings for each locations are 80.5 for AKRON, 79 for BILOXI , 85.5 for CARTHAGE , 74 for DENVER.

Again the Composite rating of CARTHAGE are high when compared with other locations. I would reach the same conclusion even if the weights of operating cost and labor cost were reversed