Question: SIGMA FIT s management is considering three different locations for its new store, namely: Heliopolis, Zayed and 5 th Settlement. The management team has identified

SIGMA FITs management is considering three different locations for its new store, namely: Heliopolis, Zayed and 5th Settlement. The management team has identified the five main factors listed in the following table as the basis for evaluation, and has assigned weights as shown in the same table. The operations manager has the following pieces of information to rate each location on each factor, on a 100- point basis (higher scores are better):
The traffic per square meter at Zayeds site is 60 customer per sq. Meter, Heliopoliss traffic 140 customers per sq. M. and 60 Sq. M. for 5th Settlement. Concerning the Labor cost at Heliopolis, it costs the business LE 60 per hour, However, for Zayed its relatively higher as it costs the business round LE 90 per hour. Finally, it incurs the business LE 100 per hour.
In addition, for the availability of target segment, Heliopolis has 50% of the requested segment, Zayed has almost 60% and the 5th Settlement has 70%.
Zayed location rental cost is estimated to be around LE 120,000 per month, while Heliopolis costs LE 80,000 and 5th settlement costs LE 135,000 monthly.
Regarding Proximity to public transportation, it takes three blocks to the proposed Restaurant location at Heliopolis to the nearest bus and metro stations. However, it takes five blocks to the nearest bus station for Zayed and four blocks at 5th Settlement. Factor
Factor Description
Weight 12345
Traffic per square meter 0.15 Cost of Labors 0.25 Availability of target segment 0.15 Rental Cost 0.30 Proximity to public transportation 0.15
As an information to:
operations manager, SIGMA FITs management has asked you to use the previous
a. Calculate the weighted score for each alternative location. (1 Mark)
b. Identify the other factors that your company may wish to include in their decision while
using this factor rating approach. (1 Mark)
c. If the management team weighted the factors equally, how would the locations stack up in
terms of their composite factor rating scores? (1 Mark)
d. If Rental costs and Traffic per square meter are given weights that are double the weights
of the other factors, how would the locations stack up?(1 Mark)
Currently, SIGMA FIT has eight stores in Great Cairo, each of which is serviced once a week. Here are the x and y coordinates of the locations of these five branches and the number of SIGMA FIT Laptop Sleeves that go to each destination. If you knew that SIGMA FIT operates out of a single warehouse, whose coordinates are also included. SIGMA FIT has outgrown this warehouse, and the partners are discussing whether to expand the present facilities or construct a larger warehouse at a new site.

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