HOW DID I DO

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

Houston Austin

.40 * 30 = 12 .40 * 20 = 8

.35 * 40 = 14 .35 * 30 = 10.5

.05 * 20 = 1 .05 * 20 = 1

.20 * 10 = 2 .20 * 30 = 6

12 + 14 + 1 + 2 = 29 8 + 10.5 + 1 + 6 = 25.5

Based on the factor rating method, I would you choose Houston.