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

Define the concept of a process approach, Explain the concept of a process ...

Explain the concept of a process approach. What is scope? Explain the concepts of normative references?

Define construct a stem-and-leaf display, Use the data in Exhibit 16-5 to c...

Use the data in Exhibit 16-5 to construct a stem-and-leaf display

Explain confidence interval calculator, Practical Application Scenario 1 To...

Practical Application Scenario 1 To complete this scenario, use the Confidence Interval Calculator and the Area Gas Prices - Random Sample documents, provided in the resources. The

Explain different components of the marketing mix, What is the definition o...

What is the definition of marketing? What are the benefits and drawbacks of incorporating marketing into the sales function of an organization? Do you think that marketing should b

Difference among purchasing and supply management, What is the difference b...

What is the difference between purchasing and supply management?

Explain how is samsung currently performing, 1. In what ways has Samsung's ...

1. In what ways has Samsung's multibusiness model changed overtime? Why did its top managers make these changes? 2. How is Samsung currently performing/ What kinds of changes is

LEAN STNCHRONIZATION, what are the wastes and how to overcome them?

what are the wastes and how to overcome them?

Explain critical path, Explain Critical Path. This is that sequence of ...

Explain Critical Path. This is that sequence of activities that decide the complete project duration. Critical Path is formed by critical activities. This path consumes maximum

Describe implementation and communication of strategic plan, Why is it impo...

Why is it important to continuously update the implementation and communication of a strategic plan? Who should be responsible for updating and communicating a strategic plan? Why?

LINE BALANCING, WHAT DO YOU UNDERSTAND BY LINE BALANCING

WHAT DO YOU UNDERSTAND BY LINE BALANCING

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