Using the factor scoring rating method as we learned in


The Security National Bank is considering two locations for a new branch. The two choices are a major mall and a strip mall. The site selection team is evaluating two sites, and they have scored the critical success factors for each as shown below. The weights reflect the same relative importance as we have used in class. They want to use these ratings to compare the locations.

Critical Success Factor

Factor Weight

Major Mall Site

Strip Mall Site

Relocation cost

0.30

$190,000

$240,000

Customer service

0.40

2.5

3.0

Service quality

0.10

1.8

2.4

Security and safety

0.10

2.4

1.8

Market share

0.10

1.8

2.1

The non-economic scores are on a 0 to 3.0 basis with 3.0 being best and it is possible to achieve the 3.0 score.

a) Using the factor scoring (rating) method as we learned in class, which site should Security National Bank use based on the above information?

b) Suppose the 3.0 value for the Customer Service for the Strip Mall Site is questionable. At what Customer Service score for the Strip Mall Site would the bank change its decision from what it found in a)?

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Operation Management: Using the factor scoring rating method as we learned in
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