Question

A location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supply of raw materials, which has a weight of .50, transportation cost, which has a weight of .40, and labor cost, which has a weight of .10. The scores of raw materials, transportation and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should:

Answer 1

Answer: The minimum score acceptable is 75, Akron has a score of 69 while Boston has a score of 64. The Manager should not consider Boston and Akron, they both have a score below the acceptable score of 75

Explanation:

Score = 0.5 x Raw material + 0.40 x Transport + 0.10 x Labor cost

Akron = 0.5 x (60) + 0.40 x (80) + 0.10 x (70)

Akron = 30 + 32 + 7 = 69

Boston = 0.5 x (70) + 0.4 x (50) + 0.10 x (90)

Boston = 35 + 20 + 9 = 64.

The minimum score acceptable is 75, Akron has a score of 69 while Boston has a score of 64. The Manager should not consider Boston and Akron, they both have a score below the acceptable score of 75