A major drug store chain wishes to build a new warehouse to serve the whole Midw
ID: 1143505 • Letter: A
Question
A major drug store chain wishes to build a new warehouse to serve the whole Midwest. At the moment, it is looking at three possible locations. The factors, weights, and ratings being considered are given below:
It appears that based upon the weights and rating Des Moines should be chosen. I need to know how the answers were obtained and the formulas that were used to obtain the weighted rating
Ratings
Weighted Rating
Factor
Wight
Peoria
Des Moines
Chicago
Peoria
Des Moines
Chicago
Nearness to Market
20
4
7
5
80
140
100
Labor Costs
5
8
8
4
40
40
20
Taxes
15
8
9
7
120
135
105
Nearness to Suppliers
10
10
6
10
10
60
100
Sum of
Of
Weighted
Ratings
340
375
325
Ratings
Weighted Rating
Factor
Wight
Peoria
Des Moines
Chicago
Peoria
Des Moines
Chicago
Nearness to Market
20
4
7
5
80
140
100
Labor Costs
5
8
8
4
40
40
20
Taxes
15
8
9
7
120
135
105
Nearness to Suppliers
10
10
6
10
10
60
100
Sum of
Of
Weighted
Ratings
340
375
325
Explanation / Answer
Weighted Rating = Given weight*rating
for example
consider factor(labor costs) and rating (peoria)
Weighted Rating = 5*8 = 40
in the given table(nearness to suppliers)(Peoria)
weighted rating is supposed to be 100 not 10
Des Moines should be chosen because of the higher Weighted Rating(375)
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