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

How feedback either promoted, How feedback, Goals Competence, and motive ha...

How feedback, Goals Competence, and motive has have either promoted or stunted performance in your own experiences at work.

Explain dynamic scheduling problem, Please explain how this works... I'm so...

Please explain how this works... I'm so confused! Suppose SPT rule is being used in a dynamic scheduling problem. There are five jobs A, B, C, D, and E ready to be processed at

Explain equal employment and affirmative action, Select a business of your ...

Select a business of your choice and visit their websites. From the website only, can you determine if the company supports workplace diversity, equal employment, affirmative actio

Explain what is each player''s expected profit, The local lottery sets up a...

The local lottery sets up a game wherein a player has a chance of collecting $800. The player must choose a 3-digit number and if it matches the lottery number, the player recei

Concepts of collective bargaining process, The United Auto Workers union en...

The United Auto Workers union enters into contract negotiations with the Ford Motor Company in Michigan. What are the three main subject areas the UAW can negotiate with Ford? Prov

Explain insignificant point of difference, A young musician goes on tour to...

A young musician goes on tour to promote his newest songs. The concerts are a huge success, but due to technical problems, the musician's songs are not posted to iTunes until 6 wee

Assignment, #question.Opration system of the garments manufacture of bangla...

#question.Opration system of the garments manufacture of bangladesh.

Process charts - process design, Process Charts - Process Design The ...

Process Charts - Process Design The process flow chart is probably the most commonly used means of recording, and comes in several variants. Each of them uses some, or all, o

Explain economic order quantity or just-in-time, Complete additional invest...

Complete additional investigation on the JIT and EOQ models. Discuss which of the two inventory models is better and why: Economic Order Quantity or Just-in-Time?

500, find the optimal location for kilroy"s distribution center in this exp...

find the optimal location for kilroy"s distribution center in this expanded version of the problem

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