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

Oregon productivity matrix - performance measures, Oregon Productivity Matr...

Oregon Productivity Matrix - Performance Measures The Oregon productivity matrix (OPM) was developed in Oregon State University in 1986 and measures accomplishments against go

Explain homogenous group, In a diverse team, a "fault-line" refers to: a. C...

In a diverse team, a "fault-line" refers to: a. Cases in which a team tends to find fault or blame in the other team members rather than their own behaviour b. Cases in which group

Explain the first step in segmenting and targeting markets, The first step ...

The first step in segmenting and targeting markets is to recognize a need. group potential buyers into segments. create product groupings. estimate size of the overall

Compare as well contrast copyrights, Compare and contrast patents, copyrigh...

Compare and contrast patents, copyrights, and trademarks. Evaluate how these provisions can improve the financial position of a small business.

What are the measures to ensure equal opportunity, Affirmative action refer...

Affirmative action refers to a policy or a program that tries to respond to instances of past discrimination by implementing proactive measures to ensure equal opportunity today. I

Sffdfd, Why mary parker follett ideas tended to be popular

Why mary parker follett ideas tended to be popular

Line Balancing, What do you understand by “line balancing”? What happens if...

What do you understand by “line balancing”? What happens if balance doesn’t exist?.

Explain toyota and the recalls, Discuss why organizations need to have the ...

Discuss why organizations need to have the correct performance metrics to drive quality. Think of examples in the news and their outcomes. For example: • Toyota and the recalls • B

Explain the major risk factors of the disease, Select one chronic disease s...

Select one chronic disease such as diabetes or heart disease. Assume that you are working for a county public health department with staff nurses and physicians. You want to run a

Compute xpected top-down estimated cost for project, You have been asked to...

You have been asked to estimate the costs for a project to build an industrial power plant. Based on historical data, the steam turbine accounts for 30 percent of the total costs f

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