Question: ) 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

) Case Study Selecting a location using the
) 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* Agints) Weighted Scores Decision Issue Weight Seattie San Diego Seattle San Diego Denver Labor costs 16. Labor availability 18 Transportation costs Transportation availability 15 Taxes 5 5-as Quality of life 8 17 35 Denver 45 25 75 85 50 116 55 50 55 70 85 60 Infrastructure costs 80

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!