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Alshorouk Inc. is a small but growing company and is currently looking for to add a new site to its existing one. The factors for three locations are stated in the following table with a total sum of weights 100 and maximum score of 5 Factor Factor weight Loc1 Loc2 Loc3 Proximity to ports 15 3 4 4 Proximity to supplier 20 4 2 5 Facility with excess capacity 1 2 5 Facility with potential to expand 5 2 1 Close to highway 15 4 3 3 Environmental issues 10 3 4 3 a- If Alshrouk Inc. is targeting excess capacity, which location would be preferred if the weight of third factor is triple that of the fourth factor b- If shourok Inc is targeting future expansion, what would be the ratio between third and fourth factor to make loc1 preferable

User Thiha Aung
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Answer:

Alshorouk Inc.

a) If Alshrouk Inc. is targeting excess capacity, the location that would be preferred if the weight of third factor is triple that of the fourth factor is:

Loc3

b- If Alshourok Inc is targeting future expansion, the ratio between third and fourth factor to make loc1 preferable would be:

1 : 3

Step-by-step explanation:

a) Data and Calculations:

Total sum of weights = 100

Maximum score = 5 Factor

Factor weight Loc1 Loc2 Loc3

Proximity to ports (15) 3 4 4

Proximity to supplier (20) 4 2 5

Facility with excess capacity 1 2 5

Facility with potential to expand 5 2 1

Close to highway (15) 4 3 3

Environmental issues (10) 3 4 3

Total ascribed weight = 60 (15 + 20 + 15 + 10)

Unascribed weight for the third and fourth factors = 40 (100 - 60)

a- If Alshrouk Inc. is targeting excess capacity, which location would be preferred if the weight of third factor is triple that of the fourth factor

Third and fourth factor weights = 3 : 1

Third factor weight = 3/4 * 40 = 30

Fourth factor weight = 1/4 * 40 = 10

Factor weight Loc1 Loc2 Loc3

Proximity to ports (15) 45 (3*15) 60 (4*15) 60 (4*15)

Proximity to supplier (20) 80 (4*20) 40 (2*20) 100 (5*20)

Facility with excess capacity (30) 30 (1*30) 60 (2*30) 150 (5*30)

Facility with potential to expand (10) 50 (5*10) 20 (2*10) 10 (1*10)

Close to highway (15) 60 (4*15) 45 (3*15) 45 (3*15)

Environmental issues (10) 30 (3*10) 40 (4*10) 30 (3*10)

Total weighted scores 295 265 395

b) To make loc1 preferable, ratio of third and fourth factor would change to 1:3 and the total weighted scores would become:

Factor weight Loc1 Loc2 Loc3

Proximity to ports (15) 45 (3*15) 60 (4*15) 60 (4*15)

Proximity to supplier (20) 80 (4*20) 40 (2*20) 100 (5*20)

Facility with excess capacity (10) 10 (1*10) 20 (2*10) 50 (5*10)

Facility with potential to expand (30) 150 (5*30) 60 (2*30) 30 (1*30)

Close to highway (15) 60 (4*15) 45 (3*15) 45 (3*15)

Environmental issues (10) 30 (3*10) 40 (4*10) 30 (3*10)

Total weighted scores 375 265 315

User Srikanth AD
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