S7-1. 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:

Scores (0 to 100)

Location Factors Weight Shanghai Hong Kong Singapore Political stability 0.25 50 80 90 Economic growth 0.18 90 80 75 Port facilities 0.15 60 95 90 Container support 0.10 50 80 90 Land and 0.08 50 30 construction cost Transportation/

0.08 50 80 70 distribution Duties and tariffs 0.07 70 90 90 Trade regulations 0.05 70 95 95 Airline service 0.02 60 80 70 Area roads 0.02 60 70 80 Recommend a site based on these location factors and ratings.