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

Operation research, A paper mill produces two grades of paper viz., X and Y...

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i

Explain ideas that would increase sales, Your best friend owns a small chil...

Your best friend owns a small children's clothing store located in the downtown area of a community of 50,000 citizens. Business has been slow the past year due the construction of

Explain formulate and solve a linear optimization model, Klein Industries m...

Klein Industries manufactures three air compressors: small, medium, and large, which have unit profits of $20.50, $34, and $42 respectively. The monthly projected sales of small ar

Explain individual level barriers to communication, Identify the four indiv...

Identify the four individual level barriers to communication and the ways to overcome them

Describe supervisor can avoid rote, How can supervisors avoid receiving "ca...

How can supervisors avoid receiving "canned" or rote answers to interview questions? This question is about the Supervisor

Explain supportive organization, There are four critical success factors th...

There are four critical success factors that are important for effective risk management, supportive organization, comment people, appropriate methods, tools and techniques, and si

Explain what is its current yield, Consider a $1,000 par value, 7% annual c...

Consider a $1,000 par value, 7% annual coupon bond. The bond matures in 9 years. Assuming the bonds required return is 10%, what is its current yield? (Semi-annually compounding)

Management., what does employee empowerment mean in job design

what does employee empowerment mean in job design

Explain why do you prefer that method, We need to consider some accounting ...

We need to consider some accounting ideas in order to cover this week%u2019s Objective # 3. So in that regard, for your own business, which method of accounting would you use, the

Production planning and control (ppc), Production Planning and Control (PPC...

Production Planning and Control (PPC) Production in manufacturing comprise  a series  of steps by  which  material is given  a new  form to  satisfy a predetermined objective,

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