Question: The EU has made changes in airline regulation that dramatically affect major European carriers such as British International Air, KLM, Air France, Alitalia, and Swiss.
The EU has made changes in airline regulation that dramatically affect major European carriers such as British International Air, KLM, Air France, Alitalia, and Swiss. With ambitious expansion plans, British International Air (BIA) has decided it needs a second service hub on the continent, to complement its large Heathrow (London) repair facility. The location selection is critical, and with the potential for 4,000 new skilled blue-collar jobs on the line, virtually every city in Western Europe is actively bidding for BIA's business. After initial investigations by Holmes Miller, head of the Operations Department, BIA has narrowed the list to 9 cities. Each is then rated on 12 factors, as shown in the table below.
| City | |||||||||||||
| Italy | France | Germany | |||||||||||
| Factor | Factor Description | Weight | Milan | Rome | Genoa | Paris | Lyon | Nice | Munich | Bonn | Berlin | ||
| 1 | Financial incentives | 85 | 8 | 7 | 8 | 7 | 6 | 7 | 8 | 8 | 8 | ||
| 2 | Skilled labor pool | 85 | 3 | 5 | 5 | 9 | 8 | 7 | 10 | 7 | 8 | ||
| 3 | Existing facility | 75 | 5 | 7 | 1 | 8 | 7 | 4 | 8 | 8 | 3 | ||
| 4 | Wage rates | 70 | 10 | 7 | 9 | 4 | 7 | 7 | 3 | 5 | 6 | ||
| 5 | Competition for jobs | 70 | 8 | 3 | 9 | 1 | 7 | 8 | 3 | 8 | 10 | ||
| 6 | Ease of air traffic access | 65 | 4 | 3 | 7 | 1 | 8 | 7 | 5 | 9 | 10 | ||
| 7 | Real estate cost | 35 | 6 | 3 | 7 | 4 | 6 | 6 | 3 | 4 | 4 | ||
| 8 | Communication link | 25 | 6 | 6 | 6 | 9 | 9 | 10 | 10 | 10 | 9 | ||
| 9 | Alternativeness to relocating executives | 15 | 4 | 7 | 3 | 8 | 5 | 7 | 3 | 4 | 4 | ||
| 10 | Political considerations | 10 | 7 | 6 | 6 | 10 | 7 | 9 | 9 | 3 | 9 | ||
| 11 | Expansion possibilities | 15 | 9 | 1 | 9 | 1 | 4 | 5 | 4 | 4 | 6 | ||
| 12 | Union strength | 15 | 2 | 2 | 3 | 5 | 6 | 5 | 5 | 7 | 6 | ||
a) Based on the given information, the best location for the aircraft servicing facility is Berlin, with a total weighted score of 4050.
b) After further investigation, Miller decides that an existing set of hangar facilities for repairs (factor 3) is not nearly as important as earlier thought. If he lowers the weight of that factor to 30, after this change, the best location for the aircraft servicing facility is Berlin with a total weighted score of 3915. (Enter your response as an integer.)
c) After further investigation, Miller decides that an existing set of hangar facilities for repairs (factor 3) is not nearly as important as earlier thought and he lowers the weight of that factor to 30. After making the change to the weight, Miller has also been informed that Germany wants to reconsider its offer of financial incentives and wants to add 200-million-euros to the package to entice BIA. Based on this information, the rating assigned to Germany on this factor should be raised to 10.
After making both the necessary changes, the best location for the aircraft servicing facility is _____ (Berlin, Paris, Rome, Munich, Bonn, Milan, Nice, Lyon, Genoa) with a total weighted score of ____. (Enter your response as an integer.)
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