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

Factors responsible for plant location choice, Factors Responsible for plan...

Factors Responsible for plant Location choice The physical factors associated with location of an enterprise can have a significant impact on the operations of an enterprise a

Explain what is risk, What is risk? How does risk differ from uncertainty? ...

What is risk? How does risk differ from uncertainty? How does it impact a business?

Describe the mission- vision- values- and goals, The formal strategic plann...

The formal strategic planning process has five main steps. We are going to analyze at the first step involving corporate mission, vision, values and goals in the context of the com

Explain how training and education of work forces are differ, Explain how t...

Explain how the training and education of work force differ from that of the middle level managers. The training and education of work force differ from that of the middle le

Explain how would this change of currency affect, When the Zagat, a leading...

When the Zagat, a leading provider of leisme-hased survey results, released its San Francisco Restaurants Survey, it marked the 25th year that Zagat Survey reported on diners and t

Define necessary for business organizations to act ethically, Suggest two r...

Suggest two reasons why it is necessary for business organizations to act ethically, and provide support for your rationale.

Define strong technical skills or strong communications, What types of peop...

What types of people have more difficulty being team players? What helps promote good team player behaviour? 3. What do you think is more important for a good IT professional: stro

Health and safety, what are the roles of the health and saety committees

what are the roles of the health and saety committees

Calculate the proposed capital budgeting project, Tommy Tinker Toys Inc. is...

Tommy Tinker Toys Inc. is considering a capital budgeting project that is unrelated to their current investments. The proposed project will be 40% debt financed at rd = 11.25%. The

Explain what are average weekly total costs, Given the following data for a...

Given the following data for a particular inventory item: Usage 500 units/week Ordering $40 per order Carrying Cost $.01 per unit per week Lead Time 3 weeks Price $.50 per unit a.

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