Question

The point has been reached where a biotechnology research and development company must expand by building a new facility. The search has been narrowed to four locations, all of which are acceptable to management. The assessment of these sites is being made on the basis of the six subjective location factors that follow. Management has agreed to use a five-point scale (Excellent = 5, Very good = 4, Good = 3, Fair = 2, Poor = 1 to quantify and compare their subjective opin ons about the relative goodness of the sites. The weight reflects the importance of each factor in the decision.
Facter Evaluation by Location
Factor Weight A B C D
Labor climate 35 Excellent Very Good Very Good Excellent
Quality of life 25 Fair Good Very Good Poor
Transportation 15 Good Very Good Good Fair
Markets 10 Excellent Very Good Very Good Very Good
Taxes 10 Fair Excellent Excellent Very Good
Utilities 5 Excellent Very Good Good Good
Calculate the weighted score for each alternative. Which location would you recommend?
A. A.
B. B.
C. C.
D. D.

Answer 1

Answer:

A. A

Explanation:

Location A is best suited for the management. Location A offers Excellent Labor climate, Utilities and Markets. It is fair in Quality of Life and Taxes. The best possible alternative is location A for the management of biotech research company.