What are the limitations of this particular type of analysis

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Reference no: EM131855507

A major drug store chain wishes to build a new warehouse to serve the whole Midwest . At the moment, it is looking at three possible locations.

The factors, weights, and ratings being considered are given below:

Factor	Weights	Peoria	Des Moines	Chicago
Choosing a location for a warehouse
		Ratings
Nearness to markets	25	4	7	5
Labor cost	35	8	8	4
Taxes	30	8	9	7
Nearness to suppliers	10	10	6	10

Conduct a location factor weighting analysis for the drug chain above.

How would your answer change if you expected a property tax increase, improving your weight for taxes to 45% and allocating that increase equally among the remaining factors?

What are the limitations of this particular type of analysis? Explain.

Reference no: EM131855507

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