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 how does the institutional environment, How does the institutional ...

How does the institutional environment and view come into play for Oxford in this case?

String diagram, String diagram is a simple tool for analyzing and desi...

String diagram is a simple tool for analyzing and designing work space such that movement can be minimized. The basic diagram is a scale plan or model on which a t

Explain type of antennas issues signals with equal strength, Name the type ...

Name the type of antennas issues signals with equal strength and clarity in all directions? a. directional b. bi-directional c. tri-directional d. omni-directional

Operations layout systems, After completing your program in the University,...

After completing your program in the University, you would want to establish your own business. Relate your choice of business to any of the types of operation layout systems

Draw these samples on the control charts, Plot these samples on the control...

Plot these samples on the control charts and circle any observations that appear to be out of control. mean (micronsa)(n=4) minimum maximum 4.134 4.011 4.612 3.913 3.891 4.474 4.58

Why needs and motivate positive organizational behaviour, What motivates yo...

What motivates you? What are your needs? How do you attempt to satisfy your motivational needs within your organization? What opportunities does your organization provide to satisf

Compute minimum cost service rate, Consider mean arrival rate is 1 customer...

Consider mean arrival rate is 1 customer every 4 mins and mean service time is 5/2 mins. If waiting cost is $5 per unit per min and cost of serviceing one unit is $4. Find minimum

Factors affecting scheduling - internal factors, Factors Affecting Scheduli...

Factors Affecting Scheduling - Internal Factors Internal Factors: These are the factors which are with in the control of the management. These factors should be manipulated in

Explain organization to appraise performance formally, Why is it necessary ...

Why is it necessary for an organization to appraise performance formally? Describe some situations in which an organization would be wise if it did not appraise performance formall

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