Marilyn Helm Retailers is attempting to decide on a location for a new retail outlet. At the moment, the firm has three alternatives stay where it is but enlarge the facility; locate along the main street in nearby Newbury; or locate in a new shopping mall in Hyde Park. The company has selected the four factors listed in the following table as the basis for evaluation and has assigned weights as shown:
|
Factor
|
Factor Description
|
Weight
|
|
1
|
Average community income
|
.30
|
|
2
|
Community growth potential
|
.15
|
|
3
|
Availability of public transpiration
|
.20
|
|
4
|
Labor availability, attitude, and cost
|
.35
|
Helm has rated each location for each factor, on a 100-point basis. These ratings are given below:
|
Factor
|
Location
|
|
Present Location
|
Newbury
|
Hyde Park
|
|
1
|
40
|
60
|
50
|
|
2
|
20
|
20
|
80
|
|
3
|
30
|
60
|
50
|
|
4
|
80
|
50
|
50
|
a) What should Helm do?
b) A new subway station is scheduled to open across the street from the present location in about a month, so its third factor score should be raised to 40. How does this change your answer?