Answer:
Alshorouk Inc.
a) If Alshrouk Inc. is targeting excess capacity, the location that would be preferred if the weight of third factor is triple that of the fourth factor is:
Loc3
b- If Alshourok Inc is targeting future expansion, the ratio between third and fourth factor to make loc1 preferable would be:
1 : 3
Explanation:
a) Data and Calculations:
Total sum of weights = 100
Maximum score = 5 Factor
Factor weight Loc1 Loc2 Loc3
Proximity to ports (15) 3 4 4
Proximity to supplier (20) 4 2 5
Facility with excess capacity 1 2 5
Facility with potential to expand 5 2 1
Close to highway (15) 4 3 3
Environmental issues (10) 3 4 3
Total ascribed weight = 60 (15 + 20 + 15 + 10)
Unascribed weight for the third and fourth factors = 40 (100 - 60)
a- If Alshrouk Inc. is targeting excess capacity, which location would be preferred if the weight of third factor is triple that of the fourth factor
Third and fourth factor weights = 3 : 1
Third factor weight = 3/4 * 40 = 30
Fourth factor weight = 1/4 * 40 = 10
Factor weight Loc1 Loc2 Loc3
Proximity to ports (15) 45 (3*15) 60 (4*15) 60 (4*15)
Proximity to supplier (20) 80 (4*20) 40 (2*20) 100 (5*20)
Facility with excess capacity (30) 30 (1*30) 60 (2*30) 150 (5*30)
Facility with potential to expand (10) 50 (5*10) 20 (2*10) 10 (1*10)
Close to highway (15) 60 (4*15) 45 (3*15) 45 (3*15)
Environmental issues (10) 30 (3*10) 40 (4*10) 30 (3*10)
Total weighted scores 295 265 395
b) To make loc1 preferable, ratio of third and fourth factor would change to 1:3 and the total weighted scores would become:
Factor weight Loc1 Loc2 Loc3
Proximity to ports (15) 45 (3*15) 60 (4*15) 60 (4*15)
Proximity to supplier (20) 80 (4*20) 40 (2*20) 100 (5*20)
Facility with excess capacity (10) 10 (1*10) 20 (2*10) 50 (5*10)
Facility with potential to expand (30) 150 (5*30) 60 (2*30) 30 (1*30)
Close to highway (15) 60 (4*15) 45 (3*15) 45 (3*15)
Environmental issues (10) 30 (3*10) 40 (4*10) 30 (3*10)
Total weighted scores 375 265 315
