LOCATION AKRON, BILOXI, CARTHAGE, DENVER, TX FACTOR WEIGHT он MS CO Labor availability 15 90 80 90 80 Technical school quality .10 95 75 65 85 Operating cost 30 80 85 95 85 Land and construction cost .15 60 80 90 70 Industrial incentives .20 90 75 85 60 Labor cost .10 75 80 85 75

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.2SB
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A location analysis for Cook Controls, a small manufacturer of parts for high-technology cable systems, has been narrowed down to four locations. Cook will need to train assemblers,
testers, and robotics maintainers in local training centers. Lori Cook, the president, has asked each potential site to offer training programs, tax breaks, and other industrial incentives. The critical factors. their weights, and the ratings for each location are shown in the following table. High scores represent favorable values                                                                                                  a) Compute the composite (weighted average) rating for each location.
b) Which site would you choose?
c) Would you reach the same conclusion if the weights for operating cost and labor cost were reversed? Recompute as necessary and explain.                                                                                                                                                                                                              
LOCATION
AKRON, BILOXI, CARTHAGE, DENVER,
TX
FACTOR
WEIGHT
он
MS
CO
Labor availability
15
90
80
90
80
Technical school
quality
.10
95
75
65
85
Operating cost
30
80
85
95
85
Land and
construction cost
.15
60
80
90
70
Industrial
incentives
.20
90
75
85
60
Labor cost
.10
75
80
85
75
Transcribed Image Text:LOCATION AKRON, BILOXI, CARTHAGE, DENVER, TX FACTOR WEIGHT он MS CO Labor availability 15 90 80 90 80 Technical school quality .10 95 75 65 85 Operating cost 30 80 85 95 85 Land and construction cost .15 60 80 90 70 Industrial incentives .20 90 75 85 60 Labor cost .10 75 80 85 75
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