Subway, with more than 20,000 outlets in the U.S., is planning for a new restaur

Question

Subway, with more than 20,000 outlets in the U.S., is planning for a new restaurant in Buffalo, New York. Three locations are being considered. The following table gives the factors for each site Factor Space Costs Traffic density Neighborhood income Zoning laws WeightMaitland Baptist Church Northside Mall 0.25 0.25 0.20 0.15 0.15 60 75 75 80 65 25 80 30 65 45 95 50 75 I , with a total a) Based on the given information, the best location in Buffalo for Subway to open the new restaurant is weighted score of (Enter your response rounded to two decimal places.)

Explanation / Answer

a) The total weighted score for a location is calculated as the sum of the product of the factor score and their respective weights for. So using this formula the total weighted score for all locations are:

For Maitland =(0. 25x60)+(0.25x45)+(0.20x55)+(0.15x50)+(0.15x75)

= 15 + 11.25 + 11 + 7.5 + 11.25

= 56

For Baptist Church = (0.25x75)+(0.25x75)+(0.20x80)+(0.15x65)+(0.15x25)

= 18.75 + 18.75 + 16 + 9.75 + 3.75

= 67

For Northside mall = (0.25x80)+(0.25x30)+(0.20x65)+(0.15x45)+(0.15x95)

= 20 + 7.5 + 13 + 6.75 + 14.25

= 61.5

The best location in Buffalo for subway to open the new restaurant is Baptist Church as it has the highest total weighted score of 67.

b) If the weights for space and traffic density are reversed the weight for space becomes 0.20 and weigh for traffic density becomes 0.25. So with these weights the weighted score for each location are

For Maitland = (0.20x60)+(0.25x45)+(0.25x55)+(0.15x50)+(0.15x75)

= 12 + 11.25 + 13.75 + 7.5 + 11.25

= 55.75

For Baptist Church = (0.20x75)+(0.25x75)+(0.25x80)+(0.15x65)+(0.15x25)

= 15 + 18.75 + 20 + 9.75 + 3.75

= 67.25

For Northside mall = (0.20x80)+(0.25x30)+(0.25x65)+(0.15x45)+(0.15x95)

= 16 + 7.5 + 16.25 + 6.75 + 14.25

= 60.75

So the reversal will not affect the decision as Baptist Church still has the highest total weighted score

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