Exercise #1(Total : 45 Points) - You are responsible for evaluating different locations for a new factorythat will produce/assemble Home appliances (refrigerators, washers/dryers, etc). You plan on producing about 200,000 units per year.

The split of your forecasted sales is:

US : 50%

Europe : 10%

Mexico and rest of Latin America : 25%

China : 5%

Japan : 5%

Rest of the World 5%

About 50% of your components will be vertically integrated in your plant.

The rest are coming from US(15%), Asia(20%), Europe(5%) and Mexico/Latam(10%)

The 3 alternatives being considered are:

-Pittsburgh (USA)

-Puebla (Mexico)

-Guangzhou (China)

You will follow the Weighted Factor Rating model for your evaluation.

a) Identify the main 8 factors you will use to weigh your decisions by filling the table below:(15 Points)

An example is provided to illustrate what I am looking for , but do not include it in your answer.

Factor #	Factor Description	Related Pillar of Competitiveness	Why did you include this factor?
Example	Utilities availability/cost	Infrastructure	To assess if the utilities I will need (water/gas/electricity) are available in the quantities needed and cost at that location
1
2
3
4
5
6
7
8

b) Review the factors you selected and their relative importance, assign weights to each one of them and fill the following table:(5 points)

c) Now...Score each location assigning values from 1 to 10(10 points)

#	Factor Description	Weight	Pittsburgh	Puebla	Guangzhou
Example	Utilities availability/cost	0.15	7	6	5
1
2
3
4
5
6
7
8
Total		1.00

d) Calculate the total score for the 3 locations(5 points)

e) Select and Recommend location and explain your decision (not only based on the score but also your overall qualitative assessment of why it makes sense to follow the higher score location) (10 points)