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Marilyn Helm Retailers is attempting to decide on a location for a new retail outlet. At the moment, the firm has three alternatives-stays where it is but enlarge the facility; locate along the main street in nearby Newbury; or locate in a new shopping mall in Hyde Park. The company has selected the four factors listed in the following table as the basis for evaluation and has assigned weights as shown:
Factor
Factor Description
Weight
1
Average community income
.30
2
Community growth potential
.15
3
Availability of public transportation
.20
4
Labor availability, attitude, and cost
.35
Helm has rated each location for each factor, on a 100-point basis. These ratings are given below:
Present
Location Newbury
Hyde Park
40
60
50
20
80
30
b) A new subway station is scheduled to open across the street from the present location in about a month, so its third factor score should be raised to 40. How does this change your answer?
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