Question: 1. Facility Location Using Weighted Factor Analysis One of the most straightforward as well as widely applicable decision-making tools is weighted-factor analysis. Weighted-factor analysis can

1. Facility Location Using Weighted Factor

1. Facility Location Using Weighted Factor Analysis One of the most straightforward as well as widely applicable decision-making tools is weighted-factor analysis. Weighted-factor analysis can be used in almost any decision where multiple alternatives are available such as 1) location selection, 2) supplier selection, and 3) carrier selection. However, because weighted-factor analysis is primarily used to make comparisons, it is information and judgment intensive. That is, management must determine which of the many diverse comparison criteria will be used in the analysis. These criteria must then be weighted as to their importance, which frequently requires some form of Delphi analysis (especially when management teams are being used). Further, information regarding each alternative must be collected along each dimension of comparison. The following information regarding a location decision can be used to illustrate weighted-factor analysis. You are looking to open a new plant in Utah. Three locations are being considered. Each site has been rated along five factors: Factor Quality of labor pool Housing costs Local tax code Public transportation Recreational amenities Weight Salt Lake City Ogden 0.40 9 8 0.20 5 9 0.20 7 4 0.10 7 6 0.10 8 5 Provo 7 6 7 5 5 a. Use weighted factor analysis, where would you locate the plant? b. If the weights for quality of labor pool and housing costs are reversed, would this affect the decision

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