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 what are supply-chain management strategies used, What are at least...

What are at least four supply-chain management strategies used in Regal Marine? Present and explain them.

Explain contract formation process that he now faces, You are currently an ...

You are currently an intern working for the largest law firm in Alabama. Your mentor and senior attorney introduces you to a new client, Dick Jefferson, the owner of House Doctor,

Explain which characteristic of a project manager is more im, Discuss which...

Discuss which characteristic of a project manager is more important to high performance teams%u2014use of power or motivation?

Define high inventory holding cost can lead to low eoq value, 1)The standar...

1)The standard time at Lensco Inc for grinding a set of prescription lenses is 18 minutes. If the typical efficiency for their operations is 80%, and typical machine reliability is

Explain how was your performance compared to the standards, Think of a clas...

Think of a class you've taken in the past. What standards of performance did your professor establish? How was your actual performance measured? How was your performance compared t

Demerits of absolute standards and relative standards, Contrast the advanta...

Contrast the advantages and disadvantages of absolute standards and relative standards.

Explain modern sweatshops are a problem, 1) List the four schools of though...

1) List the four schools of thought along with the basic cause of the labour problem and solution to the labour problem for each. 2) Explore the online exhibit about the 1911 Tr

Explain for bill what an enterprise resource planning, Describe for Bill wh...

Describe for Bill what an Enterprise Resource Planning (ERP) solution would look like for his UMUC Pizza business and how his business could benefit from implementing an ERP soluti

Explain what is the net income for this firm, Lifeline, Inc., has sales of ...

Lifeline, Inc., has sales of $585,000, costs of $273,000, depreciation expense of $71,000, interest expense of $38,000, and a tax rate of 35 percent. What is the net income for thi

Explain about the organization and its resources, 1. How to characterize yo...

1. How to characterize your supervisor's approach to management? For example, which particular management tasks and roles does this person perform most often? What kinds of managem

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