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 why is it important to develop their products, Why is it important ...

Why is it important to develop their products/services marketing plan in writing?

Process capability index - measure of inherent capability, Process Capabili...

Process Capability Index - Measure of the Inherent Capability This index provides a measure of the inherent capability of a process by simply relating the 6σ spread of the pro

Explain four ps of marketing, Explain Four 'P's of Marketing. Four 'P'...

Explain Four 'P's of Marketing. Four 'P's of Marketing : Marketing may be described as a human activity directed at satisfying wants and needs by exchange processes. A market

Tangibility & intangibility scale - service delivery system, Tangibility & ...

Tangibility & Intangibility Scale - Service Delivery System Products are things, services are ideas and concepts. From the figure you can see that there is no such thing as a

Explain what is the present value of each investment, You must choose betwe...

You must choose between two passive investments. Investment A requires an initial investment of $50,000 but will return $71,000 in three years. Investment B requires an initial inv

What are generally accepted accounting principles, Yvon, an accountant, is ...

Yvon, an accountant, is charged with negligence by Zesty Sauce, Inc., a client. Yvon may successfully defend against the claim if she can show that (Points : 2) scienter was lackin

Analyze the relationship between analysis and planning, Analyze the relatio...

Analyze the relationship between analysis, planning, implementation, and control. Provide an example of a product or service that flows through the relationship. Break down this pr

Explain a product at each stage of the plc, Using the product life cycle, d...

Using the product life cycle, describe a product at each stage of the PLC and support your choice.

Explain approach the technology issues facing the company, As the advisor t...

As the advisor to Keyes what offensive or defensive strategic options would you recommend for blockbuster as the company moves forward? In particular, how would you approach the te

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