Question: A location analysis has been narrowed down to two locations, A and B. The main factors in the decision will be supply of raw materials,
A location analysis has been narrowed down to two locations, A and B. The main factors in the decision will be supply of raw materials, which has a weight of 0.50, transportation cost, which has a weight of 0.40, and labor cost, which has a weight of 0.10. The ratings (out of 100, with higher score being more desirable) for raw materials, transportation cost, and labor cost are:
A: 60, 80, and 70, respectively;
B: 70, 50, and 90, respectively.
On worksheet Q3, build up your own template to determine which location should the manager choose using the factor rating method.
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