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 traditionally non-user input environment, To what extent should end...

To what extent should end users be involved in the design of a database? How have our ideas of agile development environments affected this traditionally non-user input environment

Compare all partial factor and total factor productivity, Consider - a smal...

Consider - a small manufacturing company which produces high quality furniture has provided the following data: Compare all partial factor and total factor productivity for

Explain modifications to the franchisor''s product offering, Do you think t...

Do you think that franchisors should allow franchisees to make modifications to the franchisor's product offering, explain? Please put in your own words

Work study, link between work study and value analysis?

link between work study and value analysis?

What is the difference among personal and business ethics, What is the diff...

What is the difference between personal and business ethics?

Explain bottom-up and top-down estimating approaches, What are the differen...

What are the differences between bottom-up and top-down estimating approaches? Determine advantages and disadvantages for using each approach. Under what conditions would you prefe

Explain graph based layout construction method, Is the Graph based layout c...

Is the Graph based layout construction method always produces maximally Planar Graph & Maximally Planar weighted graph?

Explain compile a list of major system life-cycle activities, Compile a lis...

Compile a list of major system life-cycle activities. For each activity on the list, try to find the related supply chain activities. Present your finding in a table with the syste

What are the characteristics of total quality management, Q. What are the c...

Q. What are the characteristics of total quality management? Characteristics of total quality management: 1. Get this right first time philosophy 2. Continuous enhancemen

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