Question: Selecting a location using the factor-rating method. Superior Pump is a leader in submersible sump pumps for home and commercial use. Superior's sales are dominated
Selecting a location using the factor-rating method. Superior Pump is a leader in submersible sump pumps for home and commercial use. Superior's sales are dominated (60 percent) by its 12 off-the-shelf products that are sold through company-owned and independent distributor channels to retailers throughout the United States, Canada, and Mexico. The remaining 40 percent of sales is a mixture of assembling- and make-to-order (customized) pumps. Currently, management is looking to expand direct coverage by building a distribution facility on the West coast. In consideration of sites, management is particularly concerned about labor, transportation, infrastructure, and facilities costs. As the operations manager at Superior Pump, you have been asked to provide your expert opinion concerning the new location. The executive team members have done a lot of work narrowing down the locations and assessing the strengths and weaknesses of three possible sites: Seattle, San Diego, and Denver. They have also carefully detailed what critical decision issues need to be considered and have actually rated them on a scale of 1 to 100. The results of their efforts appear in the following worksheet. Your responsibility is to weigh the importance of each location decision issue based on managements goals and then to make a recommendation based on your findings. Use the worksheet to determine your answer. image.png Based on your calculations, the optimal site is: (show all work). Now, If all things stayed the same except - you changed the weight of Transportation availability from 15% to 5% and Facilities cost from 15% to 25%. What are the new weighted scores? Based on your new calculations, what is the optimal site: (show all work).
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