Factor rating method, Operation Management

Assignment Help:

East Coast Manufacturing, Inc. plans to locate a new production facility in Hartford, Philadelphia, or Baltimore.  Six location factors are important:  cost per product unit, labor availability, union activities, local transportation, proximity to similar industry and proximity to raw materials.  The weighting of these factors, the scale for each factor and the scores for each location are shown below.   Different SME's (subject matter experts) scored each of the non-economic factors.  So, unfortunately, the scores for the non-economic factors are scaled differently.  The scales are indicated on the table.  On the scale, the highest score is always the best value.  For example, for the scale 1-5, the best value is 5.  For each of the Non-economic factors, it is possible to score the maximum. 

Location Factor

Factor Weight

Scale

Hartford

Philadelphia

Baltimore

Cost per product unit

0.55

 

$48

$59

$52

Labour availability

0.15

0-5

2.5

4.0

4.0

Union activities

0.10

0-3

2.7

1.8

0.9

Local transportation

0.10

0-3

1.2

2.4

2.4

Proximity to similar industry

0.05

0-1

0.5

1.0

0.7

Proximity to raw materials

0.05

0-1

0.7

0.6

0.4

For the following, calculate all results three decimal place (example, 0.xxx or x.xxx).

a) Using the factor scoring (or equivalent the factor rating) approach we studied in class and modified as appropriate, which site do you recommend?  Why?

b)  With everything else remaining the same as in the problem statement, what must the cost per product unit for Philadelphia be so that its total factor score is equal to the total factor score for Hartford?


Related Discussions:- Factor rating method

Explain is cloud computing the right direction, 1.) Why has Amazon.com succ...

1.) Why has Amazon.com succeeded online when so many other companies have failed? 2) Whats next for Amazon.com? Is cloud computing the right direction for the company? 3.) W

Explain bill me later, I'm having trouble finding a good order form to inte...

I'm having trouble finding a good order form to integrate into a Dreamweaver site. Any recommendations on a form that essentially collects information like a shopping cart would an

Explain sustainable competitive business advantage, What might be the most ...

What might be the most effective way to secure cooperation from one's Union in tailoring Total Compensation to help the company achieve a sustainable competitive business advantage

Explain wrong dimensions and unevenstitches, Jim's Outfitters, Inc., makes ...

Jim's Outfitters, Inc., makes custom fancy shirts for cowboys. The shirts could be flawed in various ways, including flaws in the weave or color of the fabric, loose buttons or dec

Plant location, factor relating methods for locating a plant

factor relating methods for locating a plant

Explain smartphones are more likely to be used more, Considering research: ...

Considering research: Smartphones are more likely to be used more by whites or Hispanic

How x control chart is used, How X control chart is used? X control cha...

How X control chart is used? X control chart is used with go and not go inspection.

Short-term and long-term liabilities, In addition to the car lease, Leonard...

In addition to the car lease, Leonard and Rose each have a VISA card with an interest rate of 18.25% p.a. They currently have a balance of $1,205 and made payments of $3,537 in 201

Explain complete the forward and backward pass, You are creating a customer...

You are creating a customer database for Winston-Salem Warthogs minor league baseball team. Draw a project network given the information below. Complete the forward and backward pa

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd