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

ID: 396356 • Letter: S

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 Weight Maitland BaptistChurch Northside Mall

Space 0.25 60 70 85

Costs 0.25 35 80 35

Traffic density 0.20 50 85 65

Neighborhood income 0.15 55 65 40

Zoning laws 0.15 80 25 90

a) Based on the given information, the best location in Buffalo for Subway to open the new restaurant is _______, with a total weighted score of ____. (Enter your response rounded to two decimal places.)

Explanation / Answer

Weighted Score Method:

Using given data weighted score method is used to compare the alternatives. Calculate the weighted score for each factor, by multiplying factor weight (Wi) with rating (Rij) of factor. Then, for each alternative, find the sum of product (Wi × Rij) calculated for each factor and select the alternative having the highest total score.

Maitland (j = 1)

Baptist Church (j = 2)

Northside Mall (j = 3)

Factor

Weight (Wi)

Rating (Ri1)

Weighted rating

(Wi)(Ri1)

Rating (Ri2)

Weighted rating

(Wi)(Ri2)

Rating (Ri3)

Weighted rating

(Wi)(Ri3)

Space

0.25

60

15

70

17.5

85

21.25

Costs

0.25

35

8.75

80

20

35

8.75

Traffic Density

0.20

50

10

85

17

65

13

Neighborhood income

0.15

55

8.25

65

9.75

40

6

Zoning Laws

0.15

80

12

25

3.75

90

13.5

Total Weighted Score

54

68

62.5

Highest weighted score = 68 for the location Baptish Church.

Based on the given information, the best location in Buffalo for Subway to open the new restaurant is Baptish Church, with a total weighted score of 68.00.

Maitland (j = 1)

Baptist Church (j = 2)

Northside Mall (j = 3)

Factor

Weight (Wi)

Rating (Ri1)

Weighted rating

(Wi)(Ri1)

Rating (Ri2)

Weighted rating

(Wi)(Ri2)

Rating (Ri3)

Weighted rating

(Wi)(Ri3)

Space

0.25

60

15

70

17.5

85

21.25

Costs

0.25

35

8.75

80

20

35

8.75

Traffic Density

0.20

50

10

85

17

65

13

Neighborhood income

0.15

55

8.25

65

9.75

40

6

Zoning Laws

0.15

80

12

25

3.75

90

13.5

Total Weighted Score

54

68

62.5

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