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

Influence training a class of persons, What value would it be to know that ...

What value would it be to know that you were going to be training a class of persons between the ages of 20 to 35? Would it influence the approach you would take? How?

Economics, Economics issues and operation research solutions

Economics issues and operation research solutions

Explain methods of job evaluation, Compare and contrast the following metho...

Compare and contrast the following methods of job evaluation, and include examples that are not the same as in the textbook to demonstrate understanding: Lott, Benge, and Multiple

Explain decision quality requirement that is significant, A large municipal...

A large municipality (250,000 citizens) is trying to decide where to locate a new community recreational center. The problem is relatively unstructured. There is a decision quality

Strategies for improving productivity, Strategies for Improving Productivit...

Strategies for Improving Productivity Attempts to improve the productivity of an organisation require the manager to become involved in the management of change. Without the a

Explain how can product development costs be minimized by, How can product ...

How can product development costs be minimized by entering the market late

Define job evaluation, Define job evaluation. Definition: Job evaluatio...

Define job evaluation. Definition: Job evaluation is a systematic process of evaluating various jobs of an organization. Depending on the characteristics and needs of a job, jo

Explain open communication, Some organizational culture characteristics mak...

Some organizational culture characteristics make project success more likely. These characteristics include all of the following EXCEPT: A. Support for cross-functional teams

What is cost accounting, I borrowed the book of cost accounting and brought...

I borrowed the book of cost accounting and brought the answer of the questions about three months ago. You charge me $15.94 for the answers per month. Now, I have returned the book

Understanding or knowing customer - customer satisfaction, Understanding or...

Understanding or Knowing Customer - Customer Satisfaction and Service Quality Involves making the effort to understand the customer's needs. It involves: learning the customer

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