Blue Moon Airways (BMA), a fictional airline company with headquarters in India, is planning to open a

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Blue Moon Airways (BMA), a fictional airline company with headquarters in India, is planning to open a second service hub in response to surge in demand for air travel to and from India to cities in North America and Europe. Several cities in North America have shown great interest in securing BMA€™s business because of the surge in employment levels an airline service hub can generate. Consequently, choice of location is critical for BMA both from cost and revenue perspectives. Jonty Rhodes, BMA€™s V.P. of Strategic Operations, has narrowed the choices to four cities in each of the North American and European continents. The critical location factors and their weights, as well as the score corresponding to each location for each factor, are given in the following table:

Score (on a 100-point scale) Weight London Raleigh Cleveland Chicago (0 to 100) Paris Brussels Rome Houston 80 95 85 65


1. Which location should BMA choose for its hub?

2. What location should BMA choose if the factor weights are all equal?

3. If the weight financial incentive factor is lowered to 50, would your decision be different from your answer in part a)?

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Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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