Question

2. (From the presentation, see the previous example to solve the problem) Landon's Sportswear is planning to expand The company has identified five critical location factors and their relative weights. The relative performance scores for each of the the potential sites are shown in the following table Factor Weight Akron Cleveland Columbus Proximity to suppliers 0.30 Labor costs 0:20 Freight costs Quality of life 0.15 85 85 90 Labor supply quality 0.15 a) What are the weighted scores for the three locations? b) Which site should be selected? Why? 3. (From the presentation, see the previous example to solve the problem) The Yo-Yo Design Company has collected information on fixed and variable costs for three potential plant locations, Location Annual Fixed Cost Unit Variable Cost Baltimore Salisbury Houston SI50,000 $250,000 $400,000 a) Compute the range of demand for which each location has a cost advantage, explain it with couple of sentences b) Which plant location is best if demand is • 60,000 units • 18.000 units

Answer 1

Criterion	Weight	Rating for Akron	Rating for Cleveland	Rating for Columbus	Score for Akron (weight * Rating)	Score Cleveland (weight * Rating)	Score for Columbus (weight * Rating)
Proximity to Suppliers	0.30	90	85	80	27.00	25.50	24.00
Labor cost	0.20	90	85	85	18.00	17.00	17.00
Freight Cost	0.20	90	80	95	18.00	16.00	19.00
Quality of Life	0.15	85	85	90	12.75	12.75	13.50
labor supply quality	0.15	80	85	90	12.00	12.75	13.50
					87.75	84	87
Choose LocationAkron which has a better overall score of 87.75

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