A company has the following three candidate locations to evaluate: Criterion Wei
ID: 361809 • Letter: A
Question
A company has the following three candidate locations to evaluate:
Criterion
Weight
Location 1 (rating)
Location 2 (rating)
Location 3 (Rating)
Labor Cost
0.4
4
4
5
Logistics system
0.3
3
4
3
Management
0.3
5
4
3
The locations are rated based on a 1-5 scale, with 5 being the most satisfactory.
Which location should the company choose? Please provide the overall ratings of each location for full credit. For each overall rating, please provide at least one step of calculation. (14 points)
Criterion
Weight
Location 1 (rating)
Location 2 (rating)
Location 3 (Rating)
Labor Cost
0.4
4
4
5
Logistics system
0.3
3
4
3
Management
0.3
5
4
3
Explanation / Answer
Weighted Score Method:
For each location site, calculate the weighted score for each factor, by multiplying factor weight (W) with rating (R) of factor. Then, for each location site, find the sum of product (W × R) calculated for each factor and select the location having the highest total score alternative.
Location 1
Location 2
Location 3
Criterion
Weight (W)
Rating (R1)
Weight Rating
Rating (R2)
Weight Rating
Rating (R3)
Weight Rating
Labor Cost
0.4
4
0.4*4
= 1.6
4
1.6
5
2
Logistics system
0.3
3
0.3*3
= 0.9
4
0.3*4
= 1.2
3
0.3*3
= 0.9
Management
0.3
5
1.5
4
0.3*4
= 1.2
3
0.3*3
= 0.9
Overall Rating
1.6+0.9+1.5
= 4
4
3.8
Location 1 = Overall rating = 4
Location 2 = Overall rating = 4
Location 3 = Overall rating = 3.8
The highest overall rating is for location 1 and 2, thus select location 1 or 2.
Location 1
Location 2
Location 3
Criterion
Weight (W)
Rating (R1)
Weight Rating
Rating (R2)
Weight Rating
Rating (R3)
Weight Rating
Labor Cost
0.4
4
0.4*4
= 1.6
4
1.6
5
2
Logistics system
0.3
3
0.3*3
= 0.9
4
0.3*4
= 1.2
3
0.3*3
= 0.9
Management
0.3
5
1.5
4
0.3*4
= 1.2
3
0.3*3
= 0.9
Overall Rating
1.6+0.9+1.5
= 4
4
3.8
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