A Location Analysis Has Been Narrowed Down to Three Locations

question 24

Multiple Choice

A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below: $$\begin{array} {c} \quad\quad\quad\quad\quad\quad\quad\quad{ \text { Location } } \\\begin{array} { l c c c c } \text { Factor } &\text { Wt. } & \text { A } & \text { B } & \text { C } \\\hline \text { Labor Cost } & .4 & 70 & 80 & 90 \\\text { Transportation Cost } & .2 & 80 & 80 & 60 \\\text { Market Access } & .2 & 90 & 70 & 60 \\\text { Raw Materials Cost } & .1 & 50 & 70 & 90 \\\text { Utility Cost } & .1 & 80 & 90 & 70\end{array}\end{array}$$ What is the composite score for location A?

• A) 76
• B) 75
• C) 78
• D) 74
• E) 76.33

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Definitions:

Continuous Improvement

Involves always searching for new ways to improve operations quality and performance.

Quality Control

Checks processes, materials, products and services to ensure that they meet high standards.

High Standards

The requirement or expectation for excellence and superior performance in a particular activity or field.

Internal Customers

Employees or departments within an organization that rely on other parts of the organization for products or services.