Question: A company must expand by building a second facility. The search has been narrowed down to locating the new facility in one of four cities:

A company must expand by building a second

A company must expand by building a second facility. The search has been narrowed down to locating the new facility in one of four cities: Atlanta (A), Baltimore (B), Chicago (C), or Dallas (D). The factors, scores, and weights are as in the following Table.

(a) Using the factor-rating method, what is the recommended site for the new facility?

(b) For what range of values for the weight (currently w_7= 10) does the site given as the answer to part (a) remain a recommended site?

\begin{tabular}{ccccccc} \hline & FACTOR & WEIGHT wi & Site A & Site B & Site C & Site D \\ 1 & Labor quality & 20 & 5 & 4 & 4 & 5 \\ 2 & Quality of life & 16 & 2 & 3 & 4 & 1 \\ 3 & Transportation & 16 & 3 & 4 & 3 & 2 \\ 4 & Proximity to markets & 14 & 5 & 3 & 4 & 4 \\ 5 & Proximity to suppliers & 12 & 2 & 3 & 3 & 4 \\ 6 & Taxes & 12 & 2 & 5 & 5 & 4 \\ 7 & Energy supplies & 10 & 5 & 4 & 3 & 3 \\ \hline \end{tabular}

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