Explain operating cost & labour cost, Operation Management

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A location analysis for Temponi Controls, a small manufacturer of parts for high-technology cable systems, has been narrowed down to 4 locations. Temponi will need to train assemblers, testers, & robotics maintainers in local training centres. Cecilia Temponi, the president, has asked each potential site to offer training programs, tax breaks, and other industrial incentives. The critical factors, their weights, and the ratings for each location are shown in the following table. High scores represent favourable values. Locations Factor Weight Akron, OH Biloxi, MS Carthage, TX Denver, CO Labour availability .15 90 80 90 80 Tech school quality .10 95 75 65 85 Operating cost. 30 80 85 95 85 Land & construction cost. 15 60 80 90 70 Industrial incentives. 20 90 75 85 60 Labour cost. 10 75 80 85 75 a) compute the composite (weighted average) rating for each location. b) Which site would you choose? c) Would you reach the same conclusion if the weights for operating cost & labour cost were reversed? Recomputed as necessary and explain.


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