With ambitious expansion plans, Lufthansa Airlines has decided it needs a second service hub in Germany to complement its large Frankfurt repair facility. The location selection is critical, and with the potential for 1,000 new skilled blue-collar jobs on the line, virtually every city in Germany is actively bidding for the new business. After initial investigations by Andrew Johnson, head of the Operations Department, the company has narrowed the list to three cities. Each is then rated on five factors, as shown in the following table.

a) What is the best location for the aircraft servicing facility?b) After further investigation, Johnson decides that an existing set of hangar facilities for repairs (the third factor) is not nearly as important as earlier thought. If he lowers the weight of that factor to 50, what is the best location for the aircraft servicing facility?

FACTOR Financial incentives Skilled labor pool Existing facility Wage rates Competition for jobs WEIGHT 80 85 70 70 70 MUNICH 6 8 9 4 3 CITY BONN 6 8 10 4 7 BERLIN 8 9 3 4 00 8