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

Airline implementing a policy that need to buy second seat, Answer the foll...

Answer the following questions: 1. what are the pros and cons of an airline implementing a policy that heavier customers need to buy a second seat? Research an airline and provide

What is the mixed strategies range, For the given matrix, what is the mixed...

For the given matrix, what is the mixed strategies range , Bob could make use  to dominate Middle ? Assume three Offices (A, B, and C) in downtown,  simultaneously decide whethe

Describe the liability of each party, Upon graduation from college, Bob, Ca...

Upon graduation from college, Bob, Carol, Ted, and Alice formed Kotaku, LP, and a limited partnership, to distribute video gaming software over the Internet. Bob and Carol each con

Explain strategic decision support, Strategic decision support Alignment...

Strategic decision support Alignment of information technology and management goals in healthcare is essential. This alignment assumes that information technology experts be abl

Variations in demand for its products, FIVE ways in which an organisation m...

FIVE ways in which an organisation might respond to variations in demand for its products. Five ways are:- Use of overtime working Use of part-time or casual labour Hi

Find the optimum economic production quantity, A manufacturing company sell...

A manufacturing company sells its products directly to customers and operates 5 days a week, 52 weeks a year. The production department of this company can produce at the rate of 6

Line balancing, what is line balancing and what happens if it doesn''t exis...

what is line balancing and what happens if it doesn''t exist?

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

George kyparsis determines his cost to be as follow

Importance of performance measurement, Importance of performance measuremen...

Importance of performance measurement  1. Research reveals that many institutional investors are basing their decisions, in part, on a review of company's non financial perfor

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