Question

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:____.

a. build a plant in both cities.
b. be indifferent between these locations.
c. choose Boston.
d. choose Akron.
e. reject both locations.

Answer 1

e. reject both locations.

Step-by-step explanation:

Akron's weighted score:

supply of raw materials = 0.5 x 60 = 30

transportation costs = 0.4 x 80 = 32

labor costs = 0.1 x 70 = 7

total composite score = 69

Boston's weighted score:

supply of raw materials = 0.5 x 70 = 35

transportation costs = 0.4 x 50 = 20

labor costs = 0.1 x 90 = 9

total composite score = 64