Question: QUESTION#2 a). The point has been reached where a Yagga Rowe Ltd must expand by building a new facility. The search has been narrowed to

QUESTION#2

a). The point has been reached where a Yagga Rowe Ltd must expand by building a new facility. The search has been narrowed to four locations, all of which are acceptable to management. The assessment of these sites is being made on the basis of the six subjective location factors as in the table below. Management has agreed to use a five-point scale (Excellent = 5, Very good = 4, Good = 3, Fair = 2, Poor = 1) to quantify and compare their subjective opinions about the relative goodness of the sites. The weight reflects the importance of each factor in the decision.

FACTOR EVALUATION BY LOCATION
Weight A B C D
Labor climate 35 Excellent Very Good Very good Excellent
Quality of life 25 Fair Good Very Good Poor
Transportation 15 Good Very Good Good Fair
Markets 10 Excellent Good Very Good Very Good
Taxes 10 Fair Very Good Good Very Good
Utilities 5 Excellent Very Good Good Good

  1. Based on the information in Scenario 1, what is the weighted score for location A?
  2. Based on the information in Scenario 1, which two locations have the same (equal) weighted scores?
  3. Based on the information in Scenario 1, which location has the lowest weighted score?
  4. Based on the information in Scenario 1, where should the new store be located?

b). The Ministry of Education recently designated Clarendon as its newest Region. The Regional Director is considering where in the parish to house its regional office (the office must also be located at an existing school for cost reasons). If there are five main schools in the parish, with locations and size given in the following table, use the center-of-gravity method to determine at which school the regional (central) office should be placed to minimize the average distance between the office and students. Round off to the nearest whole number. (8 marks)

High Schools (X, Y) Size (Enrollment)
Alston High (5,5) 2500
Knox College (0,5) 1000
Clarendon College (0,0) 10,000
Edwin Allen (5,0) 4500
Glenmuir (2,1) 7500

c). How do service facility location decisions differ from industrial location decisions in terms of the techniques used to analyze them?

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a To calculate the weighted score for location A we need to multiply the evaluation of each factor by its weight and sum up the results The weighted score for location A can be calculated as follows L... View full answer

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