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 competitive strategy relate to value chain structure, How does comp...

How does competitive strategy relate to value chain structure?

Explain wrongfully discharged have against an employer, Pam worked at a loc...

Pam worked at a local retail store for the past two years. At first, she loved her job; however, the store made a change in management at the end of her first year of employment. T

Determine the supply and aggregate supply curve , In the food processing se...

In the food processing sector of a country, 100 identical small firms produce frozen fruits. Each producer is a price-taker in the market and faces the following cost conditions:

What are advantages of using multiple sourcing strategies, What are the adv...

What are the advantages of using multiple sourcing strategies? Advantages of using multiple sourcing: a. May assist negotiate and drive down prices while more suppliers e

Operation management case study assignment, Problem- 1) Many Institution...

Problem- 1) Many Institutional Models: There are a variety of organizational forms that are assumed by the Manipal hospitals for carrying on their work. The Manipal hospitals ca

As a result of testing 20, As a result of testing 20,00 electric bulbs manu...

As a result of testing 20,00 electric bulbs manufactured by a company it was found that the lifetime of the bulbs was normally distributed with a mean of life of 2040 hours with st

Assume the length of critical path in a project, Suppose the length of crit...

Suppose the length of critical path in a project is 40 days and the standard deviation is 2 days. What due date should be set for the project so that the probability of completing

Explain what is cross-functional decision making process, What is cross-fun...

What is cross-functional decision making process, strategy model, and supply chain?

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