Question

A certain organization trying to decide where to locate their future factory is considering three locations. They are taking into account three factors: labor costs, currency stability, and proximity to market. Using the weights for each factor listed below and the scores achieved by each of the three considered locations, determine which location should be chosen for the new facility based on the weighted factory location model.

SCORES (Maximum 100)
FACTOR WEIGHT SITE A SITE B SITE C
Labor Cost 0.25 92 82 84
Currency Stability 0.35 75 85 88
Proximity to Market 0.30 80 50 60
Taxes 0.10 69 88 91

a. Site A
b. Site B
c. Site C
d. All sites are equally attractive

Answer 1

SITE A

Step-by-step explanation:

Given :

FACTOR___ WEIGHT _SITE A_ SITE B _SITE C

Labor Cost __ 0.25 _____92 ____82____ 84

Curr Stability _ 0.35 _____75 ___ 85____ 88

Prox Market __ 0.30 ____ 80 ____50 ___ 60

Taxes _______ 0.10 _____69 ___ 88 ___ 91

SITE A:

(0.25 * 92) + (0.35*75) + (0.30*80) + (0.10*69) = 80.15

SITE B :

(0.25 * 82) + (0.35*85) + (0.30*50) + (0.10*88) = 74.05

SITE C :

(0.25 * 84) + (0.35*88) + (0.30*60) + (0.10*91) = 78.90

Using the weighed factor model;

The based site for locating the facility is SITE A as it has the highest weighted value