Question

A location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supply of raw materials, which has a weight of 0.50, transportation cost, which has a weight of 0.40, and labor cost, which has a weight of 0.10. The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should

Answer 1

Answer:

e. Reject both locations.

Explanation:

Multiple Choice: a. Build a plant in both cities,  b. Be indifferent between these locations, c. Choose Boston, d. Choose Akron, e. Reject both locations.

Total composite score for a location = Sum of (weights*scores)

Akron:

Total composite score = [(0.50 x 60) + (0.40 x 80) + (0.10 x 70)]

Total composite score = 69

Boston:

Total composite score = [(0.50 x 70) + (0.40 x 50) + (0.10 x 90)]

Total composite score = 64

Conclusion: Since the minimum acceptable composite score is 75 and the total composite score of both the locations i.e. Akron and Boston is below 75, the manager should reject both locations.