1. Bearkat inc is considering two different locations for a new distribution center. They have identified the four factors listed in the following table as the basis for evaluation, and have assigned weights as shown. The regional manager has rated each location on each factor, on a 100-point basis, as shown under the respective columns for Houston and Austin. Based on the factor rating method, which location would you choose.

Factor	Factor Description	Weight	Houston	Austin
1	Nearness to interstate	.40	30	20
2	Hourly labor rate	.35	40	30
3	Layout of DC	.05	20	20
4	Nearness to customer groups	.20	10	30

2. Identify two other factors that could be incorporated into the factor rating method above. From a project management perspective are there any factors that would be important to the success of a large scale project.

3. Bearkat Inc is considering two location alternatives for a cross doc facility. Houston has a fixed cost of $3,500,000 per year, and variable costs $0.80 per unit. Galveston has a fixed cost of $4,600,000 per year, with variable costs of $0.30 per unit. If annual demand is expected to be 12 million widgets per year, which plant offers the lowest total cost?