Question

Houston and Dallas are identified as two possible locations for a warehouse. Cost, quality of life, and labor availability are identified as three most important factors in making the final selection. On a scale of 1-10, Houston is given scores as 7, 5, and 8, on these factors. Whereas scores of Dallas are 6, 8, and 7. If weights of these factors are 40%, 50%, and 10% respectively, what will be the weighted score of Houston

Answer 1

6.1

Explanation:

In this example, the weights of each factor is:

Cost: 40%

Quality of life: 50%

Labor availability: 10%

And the scores of Houston in these categories is:

Cost: 7

Quality of life: 5

Labor availability: 8

The formula to obtain the weighted score is:

Sum of (Number of rank * weight of factors)

Therefore:

(7*0.4) + (5*0.5) + (8*0.1) OR

(2.8) + (2.5) + (0.8) =

6.1