Question: 4) Case Study Selecting a location using the factor-rating method. Superior Pump is a leader in submersible sump pumps for home and commercial use. Superior's

4) Case Study Selecting a location using the
4) Case Study Selecting a location using the factor-rating method. Superior Pump is a leader in submersible sump pumps for home and commercial use. Superior's sales are dominated (60 percent) by its 12 off-the-shelf products that are sold through company-owned and independent distributor channels to retailers throughout the United States, Canada, and Mexico. The remaining 40 percent of sales is a mixture of assemble- and make-to-order (customized) pumps. Currently, management is looking to expand direct coverage by building a distribution facility on the West coast. In consideration of sites, management is particularly concerned about labor, transportation, infrastructure, and facilities costs. As the operations manager at Superior Pump, you have been asked to provide your expert opinion concerning the new location. The executive team members have done a lot of work narrowing down the locations and assessing the strengths and weaknesses of three possible sites: Seattle, San Diego, and Denver. They have also carefully detailed what critical decision issues need to be considered and have actually rated them on a scale of 1 to 100. The results of their efforts appear in the following worksheet. Your responsibility is to weigh the importance of each location decision issue based on management's goals and then to make a recommendation based on your findings. Use the worksheet to determine your answer. Site Scores (100 points) Weighted Scores Decision Issue Weight Seattle San Diego Denver Seattle San Diego Denver Labor costs 25 45 Labor availability 75 50 18 Transportation costs Transportation availability 15 70 85 Taxes 5 Quality of life 8 Infrastructure costs 7 55 Facilities cost 15 Totals 35 85 55 16 5C 55 60 65 10 80 75 85 80 70 BO 60 40 70 Total 00

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