Question: B A 9 6 8 8 4 5 8 4 3. Genuine Supreme Inc, a small firm of machine tools, wants to move to a

B A 9 6 8 8 4 5 8 4 3. Genuine Supreme Inc, a
B A 9 6 8 8 4 5 8 4 3. Genuine Supreme Inc, a small firm of machine tools, wants to move to a larger building, and has identified three locations. Various factors (10 points maximum) are determined and evaluated as follows: (13 marks) Factor Location Business services 5 5 Community services 7 7 Real estate cost 3 7 Construction costs 5 6 Cost of living 7 Taxes 5 4 Transportation 6 7 Labor supply 2 6 (a) If the manager weights the factors equally, how would the locations stack up in terms of their composite factor rating scores? (3 marks) (b) If business services produces and construction costs are given weights that are double weights of the other factors, which location should be chosen? (3 marks) The manager of Genuine Supreme Inc., also studies the costs of these alternatives. Location A has annual fixed costs of $800,000 and variable costs of $14,000 per unit; Location B has annual fixed costs of $920,000 and variable costs of $13,000 per unit, and Location C has annual fixed costs of $980,000 and variable costs of $12,000 per unit. The finished items sell for $ 17,000 each. (e) Over what range of yearly volume is each location the preferable one. (5 marks) (d) Consider the qualitative and quantitative evaluation from answer (a), (b), and (c), which location would you suggest and why? (2 marks)

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