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

How break even analysis helps in solving the problems, How Break even Analy...

How Break even Analysis helps in solving the problems. Break even Analysis assists solving the problems of following:  (a) What volume of sales will be necessary to cover?

Find range of annual volume, A firm plans to begin production of a new smal...

A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $7 each or to produce them in-h

Explain units of output per dollar of input, A hamburger factory produces 4...

A hamburger factory produces 40,000 hamburgers each week. The equipment used costs $5,000 and will remain productive for 4 years. The labor cost per year is $9,500. a. What is the

Explain how does radisson hotels worldwide apply capacity, How does Radisso...

How does Radisson Hotels Worldwide apply Capacity and Scheduling, and quality?

How measure of overall performance, Cunningham Performance Auto, Inc., mod...

Cunningham Performance Auto, Inc., modifies 375 autos per year. The manager, Peter Cunningham, is interested in obtaining a measure of overall performance. He has asked you to prov

Define customer driven analytic to make managerial decisions, 1) What assum...

1) What assumptions are necessary when using customer driven analytics to make managerial decisions? 2) How does the IT strategy of 7/11 influence other aspects of the business

Explain what laws are applicable to this fact pattern, Marie wrote Ray a ch...

Marie wrote Ray a check for landscaping her front lawn. Marie paid Ray in advance. The check was dated for five days later than the date of issuance. Ray was supposed to start land

Performance dimensions common in service than manufacturing, 1. Name some p...

1. Name some performance dimensions more common in service than manufacturing operations.  Answer: These are the dimensions listed. Services tend to be more intangible and tailo

Compute the line efficiency of longest processing time, Balance the assembl...

Balance the assembly line in Exhibit 8.12 for (a) a shift output of 60 pieces and (b) a shift output of 40 pieces. Assume an eight-hour shift, and use the rule, choose the assignab

Point rating method, How to write point rating method for assignment

How to write point rating method for assignment

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