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 principles for determining product mix, The senior management at Ca...

The senior management at Canine Kernels Company CKC is concerned with the existing capacity limitations so they want to accept the mix of orders that maximizes the company's profit

Explain their mission and strategy, Navigate to www.aboutmcdonalds.com/mcd ...

Navigate to www.aboutmcdonalds.com/mcd and access the "Our Company" located in the top tool bar. Then navigate to McDonald's FAQ to find the information needed. Describe their miss

Process selection and process design, Process Selection and Process Design ...

Process Selection and Process Design Having identified alternative process sequences and process span choices, the question then to be answered is which of the configurations

Explain developing or enhancing their organization, There are several diffe...

There are several different models of business development that entrepreneurs can utilize when developing or enhancing their organization. Research on stages of business developmen

Question 2, Exercise 2: Use of a Grid Analysis (Weighted Scoring Model) to ...

Exercise 2: Use of a Grid Analysis (Weighted Scoring Model) to Help Make the North American Plant Location Decision for the RX 330 This exercise illustrates how when deciding among

Describe what are the advantages of financing, In the %u201CWhat would you ...

In the %u201CWhat would you do?%u201D section of your text in Chapter 9, Pam Marrone of AgraQuest, Inc. tapped into Internet sources when she needed additional financing. Be specif

Hard factors - factors affecting productivity improvement, Hard Factors - F...

Hard Factors - Factors Affecting Productivity Improvement Productivity of the product is determined by the way in which the product fulfils its customer requirements, either b

Layout of facilities, Layout of Facilities Layout refers to the arran...

Layout of Facilities Layout refers to the arrangement of facilities. A plant layout refers to the arrangement of machinery equipment and other industrial facilities such as r

Explain essentially relativism reject the notion, Essentially relativism re...

Essentially relativism reject the notion that there is are no absolutes that govern our behaviour. How then do we determine how we behave? How reasonable and plausible is this posi

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