Factor rating method, Operation Management

Assignment Help:

East Coast Manufacturing, Inc. plans to locate a new production facility in Hartford, Philadelphia, or Baltimore.  Six location factors are important:  cost per product unit, labor availability, union activities, local transportation, proximity to similar industry and proximity to raw materials.  The weighting of these factors, the scale for each factor and the scores for each location are shown below.   Different SME's (subject matter experts) scored each of the non-economic factors.  So, unfortunately, the scores for the non-economic factors are scaled differently.  The scales are indicated on the table.  On the scale, the highest score is always the best value.  For example, for the scale 1-5, the best value is 5.  For each of the Non-economic factors, it is possible to score the maximum. 

Location Factor

Factor Weight

Scale

Hartford

Philadelphia

Baltimore

Cost per product unit

0.55

 

$48

$59

$52

Labour availability

0.15

0-5

2.5

4.0

4.0

Union activities

0.10

0-3

2.7

1.8

0.9

Local transportation

0.10

0-3

1.2

2.4

2.4

Proximity to similar industry

0.05

0-1

0.5

1.0

0.7

Proximity to raw materials

0.05

0-1

0.7

0.6

0.4

For the following, calculate all results three decimal place (example, 0.xxx or x.xxx).

a) Using the factor scoring (or equivalent the factor rating) approach we studied in class and modified as appropriate, which site do you recommend?  Why?

b)  With everything else remaining the same as in the problem statement, what must the cost per product unit for Philadelphia be so that its total factor score is equal to the total factor score for Hartford?


Related Discussions:- Factor rating method

Explain hygiene factors, Explain Hygiene Factors. Hygiene Factors: Ma...

Explain Hygiene Factors. Hygiene Factors: Maslow's require Hierarchy Theory on Motivation has been modified through Fredrick Herzberg and his contacts. Their research purport

How to prepare for career advancement, After reviewing the chapter, suggest...

After reviewing the chapter, suggest all possible ways that Scott can prepare herself for career advancement

CUSTOMER SERVICE, THE SCOPPE AND NEED OF CUSTOMER SERVICE

THE SCOPPE AND NEED OF CUSTOMER SERVICE

Types of process technologies - job production, Types of Process Technologi...

Types of Process Technologies - Job Production Job one off or make complete are description given to the organization whereby the complete task is handled by a single worker o

Explain compensation plan, Do you believe a compensation plan based 100% on...

Do you believe a compensation plan based 100% on commission would ever be justified? Give an example for either option.

Explain what recommendations would you make and why, 1. Draw a process flow...

1. Draw a process flow diagram of the process described in the case. Be sure to identify the key resources involved and the task times at each step. 2. What is utilization at ea

What are the steps in the method study procedure, 1. What are the steps in ...

1. What are the steps in the method study procedure?  Answer: Select, record, examine, develop, install, maintain.

Explain what is the value of the coefficient, Forecasting 1. Briefly des...

Forecasting 1. Briefly describe when qualitative versus quantitative forecasting methods would be used? 2. Linear Regression. a. Describe what linear regression is and how

Calculate mape for management''s technique, Sales of vegetable dehydrators ...

Sales of vegetable dehydrators at Bud Banis' discount department store in St. Louis over the past year are shown below. Management prepared a forecast using a combination of expone

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd