Factor weighting method

Factor Factor description Weight

1 Average community income .30

2 Community growth potential .15

3 Availability of public transportation .20

4 Labor availability, attitude, and cost .35

Factor Present location Newbury Hyde Park

1 40 60 50

2 20 20 80

3 30 60 50

4 80 50 50

You want to locate a new retail store or expand the current one. Which one would you choose?

Locational break-even cost-volume analysis

Cost Dallas Detroit

Fixed $600,000 $800,000

Variable $28/radio $22/radio

You need a new radio manufacturing plant. Which one would you choose?

Center-of-Gravity method

Map Coordinates

City x y

Covington 9.2 3.5

Donaldsonville 7.3 2.5

Houma 7.8 1.4

Monroe 5.0 8.4

Natchitoches 2.8 6.5

New Iberia 5.5 2.4

Opelousas 5.0 3.6

Ruston 3.8 8.5

Each home health office gets visited 3 times a day and Houma get visited 5 times a day. You need a new central office. Where would you locate the new office?