A firm that has recently experienced enormous growth is seeking to expand its capacity by leasing a
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Question:
A firm that has recently experienced enormous growth is seeking to expand its capacity by leasing a small plant and is considering three cities.
In the table below are the factors that the company is considering, the weightings for each factor, and the score each potential plant location received.
Factor (100 points each) | Weight | Location Score: Plant 1 | Location Score: Plant 2 | Location score: Plant 3 |
Annual operating expenses | 0.4 | 90 | 70 | 80 |
Labor availability | 04.2 | 80 | 80 | 90 |
Proximity to major transportation corridor | 0.2 | 100 | 100 | 70 |
a. Determine the weighted score for each plant.
b. Which plant location should be chosen, based on the factor rating analysis?
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