Question

Exotech Computers manufactures computer components such as chips, circuit boards, motherboards, keyboards, LCD panels, and the like and sells them around the world. It wants to construct a new warehouse/distribution center in Asia to serve emerging Asian markets. It has identified sites in Shanghai, Hong Kong, and Singapore and has rated the important location factors for each site as follows:Location Factors Weight Scores (0 to 100) Shanghai Hong Kong SingaporePolitical Stability 0.25 50 80 90Economic Growth 0.18 90 80 75Port Facilities 0.15 60 95 90Container Support 0.10 50 80 90Land & Constr. Cost 0.08 90 50 30Transp/Distribution 0.08 50 80 70Duties & Tariffs 0.07 70 90 90Trade Regulations 0.05 70 95 95Airline Service 0.02 60 80 70Area Roads 0.02 60 70 80Recommend a site based on these location factors and ratings.

Answer 1

Hong-Kong has the maximum weighted score. Hence, it will be selected for the best site for the construction of warehousing/distribution center.

Step-by-step explanation:

SHANGHAI

Weight Shanghai Weighted Score(W*S)

Political Stability 0.25 50 12.5

Economic Growth 0.18 90 16.2

Port Facilities 0.15 60 9

Container support 0.1 50 5

Land & Construction 0.08 90 7.2

Trans/Distribution 0.08 50 4

Duties & Tariffs 0.07 70 4.9

Trade Regulations 0.05 70 3.5

Airline Service 0.02 60 1.2

Area Roads 0.02 60 1.2

TOTAL 64.7

HONG-KONG

Weight Hong-Kong Weighted Score(W*S)

Political Stability 0.25 80 20

Economic Growth 0.18 80 14.4

Port Facilities 0.15 95 14.25

Container support 0.1 80 8

Land & Construction 0.08 50 4

Trans/Distribution 0.08 80 6.4

Duties & Tariffs 0.07 90 6.3

Trade Regulations 0.05 95 4.75

Airline Service 0.02 80 1.6

Area Roads 0.02 70 1.4

TOTAL 81.1

SINGAPORE

Weight Singapore Weighted Score(W*S)

Political Stability 0.25 90 22.5

Economic Growth 0.18 75 13.5

Port Facilities 0.15 90 13.5

Container support 0.1 90 9

Land & Construction 0.08 30 2.4

Trans/Distribution 0.08 70 5.6

Duties & Tariffs 0.07 90 6.3

Trade Regulations 0.05 95 4.75

Airline Service 0.02 70 1.4

Area Roads 0.02 80 1.6

TOTAL 80.55