EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Question
Chapter 6, Problem 10PA
Summary Introduction
Interpretation: Best location needs to be determined using a weighted factor rating method with the help of given data
Concept Introduction: In the weighted factor rating method, there are weights assigned to each of the factors and a score is given against each factor for all the probable locations. The location which gets the highest score is chosen.
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Students have asked these similar questions
ABC Wants to choose the best location for its new aluminium plant. The manager of productions and operations has three possible locations to choose from. His assistant recommends that he use break-even analysis location technique to help determine which location is best based on costs.
Design a numerical example in order to demonstrate to the Productions and Operations Manager how break-even analysis can be used in this
Demonstrate to the OM manager how to go about choosing the best location using the numerical example you designed
A supply chain manager faced with choosing among four possible locations has assessed each location according to the following criteria, where the weights reflect the importance of the criteria.
2
3
4
-Select-
is the best location and -Select-
-Select-
Location 1
Location 2
Location 3
Location 4
Criteria
Raw material availability
Infrastructure
Transportation costs
Using this information, determine the best and the worst location. Round your answers to two decimal places.
Location Total Points
1
is the worst location.
Labor relations
Quality of life
Weight
0.11
0.13
0.23
0.23
0.30
1
VG
G
P
G
G
W
Location
2
OK
OK
OK
P
VG
3
OK
VG
OK
VG
G
VG Very good 5 pts; G = Good 4 pts; OK = Acceptable 3 pts; P = Poor 1 pt.
4
OK
OK
G
VG
OK
When an organization is determining a location choice, what sustainability issues should it consider? What ethical issues should be considered?
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