Using factor-rating method to analyze problem


Assignment:

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, or 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.

Factor                                  Weight             A         B           C         D

Quality of labor

10

5

4

4

5

Construction cost

8

2

3

4

1

Transportation costs

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 costs

5

5

4

3

3

a) Which site should Tracy choose?
b) If site D’s score for Energy costs increases from a 3 to a 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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Operation Research: Using factor-rating method to analyze problem
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