Case 4 The distributor is interested in selecting the best location for a new wa

Question

Case 4 The distributor is interested in selecting the best location for a new warehouse. After a detailed study of 10 sites, the three location finalists are Smithfield, New South Wales; Eagle Farm, Quensland; and Derrimut, Victoria. The management provides the following data on the location criteria, criteria importance, and location ratings. Conduct TOPSIS in an Excel spreadsheet to determine the best location for the new plant. What do the results suggest? Ratings Eagle Farm, Criteria Weight Objective Smithfield NSW Derrimut, VIC 6 6 QLD Land cost Labour cost Labour availabilit Construction cost Transportation Access to customers Long-range goals Min Min Max Min Max Max 6 6 6 6 6 6 6 Max

Explanation / Answer

Answer:

So based on the TOPSIS raking matrix below, the location Eagle Farm QLD is the best location, with highets rating of 292 against the other two locations.

Criteria Weight NSW NSW Weightage Rating QLD QLD Weightage Rating VIC VIC Weightage Rating Objective Land Cost 4 5 20 7 28 6 24 Min Labour Cost 6 7 42 6 36 6 36 Min Labour Availability 8 6 48 7 56 5 40 Max Construction Cost 5 5 25 6 30 7 35 Min Transportation 5 6 30 6 30 7 35 Max Access to customers 9 8 72 7 63 7 63 Max long range goals 7 5 35 7 49 6 42 Max Total 272 292 275

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