2. A company has established a project team to identify a location for a new man
ID: 417024 • Letter: 2
Question
2. A company has established a project team to identify a location for a new manufacturing facility. Use a weighted scoring model to analyze three candidate locations (A, B, C) for setting up the new factory. The relative weights for each criterion are shown in the following table. A score of 1 represents unfavorable, 2 satisfactory, and 3 favorable. Location Category Labor costs Labor productivity202 Labor supply Union relations Material supply Transport costs Infrastructure Weight ABC 20 31 10 10 10 25 3. Compare your answer in Problem 2 to the answer you would have found if you had used an unweighted, 0-1 scoring model. Assume that a score of 1 means does not qualify and a 2 or 3 means it does qualify. (Hint: build a 0-1 scoring model, using x, count the total)Explanation / Answer
For a score of 1 I will give a score of 0 and for a score of 2 and 3 the score will be 1 (on the basis of 0-1 scoring model).
0 means does not qualify and 1 means will qualify. You can use the "if" function in excel also. For instance for labor costs of A the function will be: if(given score>1,1,0). What this will do is that for each score of greater than 1 a score of 1 will be alloted in the 0-1 scoring model. If score is 1 then a 0 will be allotted.
Score for A:
Total no. of "1" score for A = 5.
Similarly for B and C:
As the count is same for all the 3 locations (A,B,C all have a count of 5) all three locations are equally favorable.
Category A's given score 0-1 scoring model Labor costs 1 0 Labor productivity 2 1 Labor supply 2 1 Union relations 3 1 Material supply 2 1 Transport costs 1 0 Infrastructure 2 1 Count 5Related Questions
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