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 compare and contrast utilitarianism with situationis, Compare and c...

Compare and contrast Utilitarianism with Situationism

Define the term economic order quantity, Define the term Economic Order Qua...

Define the term Economic Order Quantity. Economic Order Quantity (EOQ): A mathematical computation for a fixed quantity of inventory ordered every time which would minimi

Look to shareholders - financial perspective, Look to Shareholders - Financ...

Look to Shareholders - Financial Perspective  In this perspective, the company identifies individual function contribute to the accomplishment of its overall mission and strat

Describe understand all the numbers in the table, Could you please explain ...

Could you please explain to be how the point of prediction is computed in problem 14.48 (question b) from Essentials of Business Statistics. I understand all the numbers in the tab

Explain which factors contribute to our personal traits, Discuss personal t...

Discuss personal traits: which factors contribute to our personal traits? Take any of MBTI or Big Five Model trait and discuss how it may appear. Is there any probability that this

Explain the service organization worry about world class, Why should a serv...

Why should a service organization worry about being world class if it does not compete outside its own national border? What impact does the Internet have on this?

Determining Sample Design, Determining Sample Design: All the items ...

Determining Sample Design: All the items consideration in any field of inquiry constitute a universe or population. A complete enumeration of all the items in the populat

Explain expected return on the market, Assume that the risk-free rate is 7....

Assume that the risk-free rate is 7.0% and the expected return on the market is 8%. What is the required rate of return on a stock with a beta of 1.4? Round your answer to two deci

Location analysis, explain the series of steps involved and various factor...

explain the series of steps involved and various factor effecting location decion?

Operation mangment, George kyparsis determines his cost to be as follow

George kyparsis determines his cost to be as follow

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