Explain score for energy cost increases, Operation Management

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Daniel Tracy, owner of Martin Manufacturing, must expand by building a new factory. The search for a location for this factory has been narrowed to four sites: A, B, C and D. The following table shows the results thus far obtained by Tracy by using the factor-rating method to analyze the problem. The scale used for each factor scoring is 1 through 5. Site Scores Factor Weight A B C D Quality of labour 10 5 4 4 5 Construction cost 8 2 3 4 1 Transportation Cost 8 3 4 3 2 Proximity to markets 7 5 3 4 4 Taxes 6 2 3 3 4 Weather 6 2 5 5 4 Energy cost 5 5 4 3 3 A) Which site should Tracy choose? B) if site D's score for Energy cost increases from 3 to 5, do results change? C) If site A's Weather score is adjusted to a 4, what is the impact? What should Tracy do at this point?


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