Reference no: EM132157538
Assignment
PART I - SITE SELECTION
In this part of the exercise, we would like to find a location for a new restaurant. The eight candidate sites are listed in Table 1 and are rated on a scale of 1-10 on four attributes (the higher the better). The weight of each attribute is given in parentheses.
1) What are the weighted average scores of each location? What decisions should be made?
Table 1
|
|
Access
|
Proximity to
Customers
|
Competition
|
Traffic
|
|
Site
|
(0.2)
|
(0.4)
|
(0.2)
|
(0.2)
|
|
Winterfell
|
7
|
4
|
5
|
9
|
|
Braavos
|
8
|
6
|
5
|
9
|
|
Dorne
|
3
|
9
|
2
|
8
|
|
Harrenhal
|
4
|
2
|
7
|
5
|
|
The Wall
|
8
|
6
|
4
|
6
|
|
King's Landing
|
1
|
4
|
3
|
7
|
|
Meereen
|
7
|
4
|
8
|
4
|
|
Qarth
|
5
|
1
|
6
|
2
|
2) Consider the same restaurant location selection problem. Now assume that we have data on the historical profitability of each location. This information is given in Table 2. Develop a regression-based system to predict the profitability of a new site, Riverrun, which has a rating of 5 in every category (Access, Proximity to Customers, Competition and Traffic). Use α = 0.10.
Table 2
|
|
Access
|
Proximity to
Customers
|
Competition
|
Traffic
|
Profit
|
|
Site
|
|
|
|
|
|
|
Winterfell
|
7
|
4
|
5
|
9
|
$464
|
|
Braavos
|
8
|
6
|
5
|
9
|
$509
|
|
Dorne
|
3
|
9
|
2
|
8
|
$283
|
|
Harrenhal
|
4
|
2
|
7
|
5
|
$535
|
|
The Wall
|
8
|
6
|
4
|
6
|
$417
|
|
King's Landing
|
1
|
4
|
3
|
7
|
$259
|
|
Meereen
|
7
|
4
|
8
|
4
|
$600
|
|
Qarth
|
5
|
1
|
6
|
2
|
$406
|
3) What other considerations do we have when we are deciding on the location of a new facility? How does the nature of the industry (service versus manufacturing) impact our decision?
PART II - OFFSHORING
Read the case below and answer the following questions:
4) Is Everdream's position on offshoring to India reasonable? Explain your answer.
5) What offshoring or outsourcing lessons from Everdream's experience can be used by other firms? What are the main considerations that are relevant to offshoring decision?