Question: please help, thank you A clothing chain is considering two different locations for a new retail outlet. The organization has identified the four factors listed
please help, thank you
A clothing chain is considering two different locations for a new retail outlet. The organization has identified the four factors listed in the following table as the basis for evaluation, and it has assigned weights as shown. The manager has rated each location on each factor, on a 100-point basis (higher scores are better), as shown under the respective columns for Barclay and Chester. Which site should be chosen? Weight .40 .25 .15 .20 Factor Factor Description 1 Average community income 2 Community growth potential 3 Availability of public transportation 4 Labor cost Barclay 75 60 45 80 Chester 70 80 90 60 Barclay Chester Both locations have same composite scores (Q9-Q10) Denso Stereo, Inc. supplies car radios to auto manufacturers and is going to open a new plant. The company is undecided between Detroit and Dallas as the site. The fixed costs in Dallas are lower due to cheaper land costs, but the variable costs in Dallas are higher because shipping distances would increase. Given the following costs: Cost Fixed costs Variable costs Dallas $600,000 $28/radio Detroit $800,000 $22/radio 9. Which site is optimal for a production of 30,000 radios? Dallas Detroit Both sites are equally optimal. How does your answer above (Q9) change if Dallas's fixed costs increase by 10%? The answer above remains. The answer above changes to the other site


Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
