Operations Management MGT 320

QUESTION 1: 1. A manager has received an analysis of several cities being considered for a new office complex. Following factors were identified as important for their location decision and the four locations were scored out of 100 for the selected factors: Factor Score out of 100 Points for each Factor Weight Loc- Loc- Loc- Loc- | IC D 0.15 60 92 80 90 Business Services Community Services Real Estate Costs 0.1 80 70 60 88 0.3 86 92 92 80 Construction Costs 0.2 80 90 90 60 0.05 55 72 90 98 Transportation Taxes 0.2 51 88 92 75 Answer the following questions based on the data given above. Show all your calculations. a. Determine the location alternative that should be chosen using factor rating method. Are these factors mostly related to the country/regional/community or site related factors? Justify. (40 points) b. How much should the Real Estate Costs score change for the second best alternative to become as good as the best alternative? (10 points)