Daniel tracy-expand by building a new factory


Problem:

Daniel Tracy, owner of Martin Manufacturing, must expand by building a new factory. The search for a location for this factory has been narrowed to four sites: A, B, C and D. The following table shows the results thus far obtained by Tracy by using the factor-rating method to analyze the problem. The scale used for each factor scoring is 1 through 5.

Site Scores

Factor Weight                 A     B     C     D
Quality of labor             10     5      4    4    5
Construction cost            8     2      3    4    1
Transportation Cost         8     3      4    3    2
Proximity to markets       7     5       3    4    4
Taxes                            6      2      3    3     4
Weather                         6      2      5    5     4
Energy cost                    5      5      4     3     3

a) Which site should Tracy choose?

b) If site C's score for Energy cost increases from 3 to 5, do results change?

c) If site A's Weather score is adjusted to a 4, what is the impact? What should Tracy do at this point?

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