A Company Desires to Locate a New Facility Based on Weighted Scores, Where Should the Company Locate Its

question 157

Multiple Choice

A company desires to locate a new facility. Based on preliminary analysis, the choice has been reduced to four locations: A, B, C, and D. These four locations were rated on a scale from 1 worst to 10 best on each of four criteria. Each criterion was also weighted to indicate its importance (i.e., the higher the weight, the more important) . The list of ratings and weights follows. Factor Score Evaluation by Location $$\begin{array} { | l | l | l | l | l | l | } \hline \text { Criterion } & \text { W eight } & \text { A } & \text { B } & C & D \\\hline \text { Wages } & 40 & 4 & 5 & 3 & 7 \\\hline \text { State Govt. P olicies } & 30 & 8 & 5 & 7 & 5 \\\text { Unionism } & 20 & 3 & 4 & 3 & 2 \\\text { Weather } & 10 & 7 & 3 & 6 & 4 \\\hline\end{array}$$ Based on weighted scores, where should the company locate its new facilities?

• A) A
• B) B
• C) C
• D) D

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Definitions:

Medicare

A federal program that provides for (1) compulsory hospital insurance for senior citizens, (2) low-cost voluntary insurance to help older Americans pay physicians’ fees, and (3) subsidized insurance to buy prescription drugs. Financed by payroll taxes.

Public Bureaucracies

Government agencies and departments responsible for implementing laws and policies, often characterized by defined procedures and hierarchical structures.

Competitive Market Pressures

The forces exerted by competitors in a market that compel businesses to improve quality, service, and efficiency to maintain or enhance their market position.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone and one person's use does not reduce availability to others, such as public parks and national defense.