In: Operations Management
The Super-Pop Popcorn Company requires a new popcorn plant in Asia. Management collects data related to each site as follows in the table below. Where the plant should be built?
Section 2: The Super-Pop Popcorn Company requires a new popcorn plant in Asia. Management collects data related to each site as follows in the table below. Where the plant should be built?
|
||||||||||||||||||||||||||||||||
1. Calculate the weighted factor scores for each site.
2. Choose the best site and explain why.
Weighted factor scoring is a technique that helps identify the best option available based on factor weightage and rating of option based on those factors. Option with the highest factor score shall be chosen.
Factor score =
Given Data:
Factor | Weight | Score | ||
India | Jordan | Oman | ||
Labor Attitude | 0.3 | 60 | 70 | 65 |
Corn Quality | 0.4 | 70 | 40 | 55 |
Butter Quality | 0.3 | 55 | 60 | 75 |
a.
Weighted factor score for India =
Weighted factor score for India = 0.3*60 + 0.4*70 + 0.3*55
Weighted factor score for India = 62.5
Weighted factor score for Jordan=
Weighted factor score for Jordan= 0.3*70 + 0.4*40 +0.3*60
Weighted factor score for Jordan= 55
Weighted factor score for Oman=
Weighted factor score for Oman= 0.3*65 + 0.4*55+ 0.3*75
Weighted factor score for Oman= 64
b.
The plant should be built in Oman as it has the highest weighted factor score (64) out of options available to the company. Oman outweighs both India (62.5) and Jordan (55) and hence is the best location for building the plant.