Considering the data and options below, determine where the company should locat
ID: 453913 • Letter: C
Question
Considering the data and options below, determine where the company should locate its new manufacturing plant. Explain why this would be the
favorable location.
Factor
Weight
Mexico City
Columbia, SC
Political Risk
.25
70
80
Transportation Costs
.20
40
90
Labor Productivity
.20
85
75
Rental Costs
.15
90
55
Labor Costs
.10
80
50
Taxes
.10
90
50
Factor
Weight
Mexico City
Columbia, SC
Political Risk
.25
70
80
Transportation Costs
.20
40
90
Labor Productivity
.20
85
75
Rental Costs
.15
90
55
Labor Costs
.10
80
50
Taxes
.10
90
50
Explanation / Answer
Factor Weight Mexico City Columbia SC Data Weighted Data Data Weighted Data a b a*b c a*c Political Risks 0.25 70 17.50 80 20.00 Transportation Costs 0.20 40 8.00 90 18.00 Labor Productivity 0.20 85 17.00 75 15.00 Rental Costs 0.15 90 13.50 55 8.25 Labor Costs 0.10 80 8.00 50 5.00 Taxes 0.10 90 9.00 50 5.00 73.00 71.25 Mexico City should be used by company for locating its manufacturing plant This is becase weighted factor data is higher as compared to Columbia
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