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 factors that need to be considered in media selection, There are thr...

There are three factors that need to be considered in media selection and budgeting. These include A) Audience reach, availability of the product, no competition B) Audience

Explain offensive strategies for blockbuster, Will new competition for Redo...

Will new competition for Redox and digital content providers force blockbuster to alter its strategy? If yes, what are the offensive strategies for blockbuster? If not, what are th

Explain disadvantages of financing via the internet, What are the advantage...

What are the advantages and disadvantages of financing via the internet?

Depict a histogram and pareto chart, Create a Histogram and Pareto Chart fo...

Create a Histogram and Pareto Chart for each of the following categories using data provided Fan satisfaction survey results (N=250) Gameday: Parking A:90 B:105 C: 45 D: 5

Briefly explain the matrix form of organization design, Briefly describe th...

Briefly describe the matrix form of organization design. List its advantages and disadvantages. This structural form is most likely to be used under what conditions?

Generate an ld score for the current layout, 1. Develop an ld score for the...

1. Develop an ld score for the current layout. What problems can you identify with the current layout? 2. Use trial and error to come up with a better layout that lowers the ld

Explain process as it relates to risk management, We have now covered the s...

We have now covered the steps of the Active Threat and Opportunity Management (ATOM) process. What is your opinion of the process as it relates to risk management? What are its ben

Define all the consumer promotion tools, Define all the Consumer Promotion ...

Define all the Consumer Promotion Tools. Samples, contests, competition and money-refund offers, for consumers are Consumer Promotion Tools.

Answer, A paper mill produces two grades of paper viz., X and Y. Because of...

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

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