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

Compute the expcted inflation rates for each year, The Fed is concerned wit...

The Fed is concerned with interest rate levels and the possibilitiy of inflation. Given the gollowing information, calculate the expected inflation premiums over hte next three yea

Explain productivity change for labour and investment, Refer to problem 1.1...

Refer to problem 1.13. The pay will be $8 per hour for employees. Charles lacket can also improve the yield by purchasing a new blender. The new blender will mean an increase in hi

Explain what is the role of the osi network layer, What is the role of the ...

What is the role of the OSI network layer when you transfer information from one computer to another? Please do not just copy a ton of paragraphs from a website. I want a one pa

Effect on costs and employer, Effect on Costs and Employer: Accidents  are...

Effect on Costs and Employer: Accidents  are harmful when  we take into account  the business  of the  concern.  It adds to the  costs of production  directly  as well  as  indire

Explain unobtrusive surveillance, What legitimates intruding into others li...

What legitimates intruding into others lives' through unobtrusive surveillance, through market research, or by whatever means?

Explain cause organizations to redesign their products, What are some of th...

What are some of the factors that cause organizations to redesign their products or services?

Explain erp implementation by cisco, 1. What can top managers do to maximiz...

1. What can top managers do to maximize chances for success here? 2. Cisco went live with ERP in a big bang fashion, which is inherently risky. How did Cisco mitigate this risk?

Explain the annual interest payment, A bond has a coupon rate of 15%, a yie...

A bond has a coupon rate of 15%, a yield to maturity of 10.55%, and a market price of $850. Therefore, the annual interest payment is: a.) $850 b.) $150 c.) $105.50. d.) $120.0

Explain statutory law, Statutory law is: Answer a law enacted by a legislat...

Statutory law is: Answer a law enacted by a legislative body also known as the fundamental law of the nation a form of common law the separation of powers at the federal level all

Calculate the normal time for the job, A work  sampling  study  is to  b...

A work  sampling  study  is to  be made of a typist  pool. It is  left that  typists are idle  30 % of the  time. How many observations  should  be made  in order  to  have 395.5%

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