Pan American Refineries, headquartered in Houston, must decide among three sites for the construction of a new oilprocessing center. The firm has selected the six factors listed below as a basis for evaluation and has assigned rating weights from 1 to 5 on each factor:
| FACTOR |
FACTOR NAME |
RATING WEIGHT |
| 1 |
Proximity to port facilities |
5 |
| 2 |
Power-source availability and cost |
3 |
| 3 |
Workforce attitude and cost |
4 |
| 4 |
Distance from Houston |
2 |
| 5 |
Community desirability |
2 |
| 6 |
Equipment suppliers in area |
3 |
Subhajit Chakraborty, the CEO, has rated each location for each factor on a 1- to 100-point basis.
|
FACTOR
|
LOCATION A
|
LOCATION B
|
LOCATION C
|
|
1
|
100
|
80
|
80
|
|
2
|
80
|
70
|
100
|
|
3
|
30
|
60
|
70
|
|
4
|
10
|
80
|
60
|
|
5
|
90
|
60
|
80
|
|
6
|
50
|
60
|
90
|
a) Which site will be recommended based on total weighted scores?
b) If location B's score for Proximity to port facilities was reset at 90, how would the result change?
c) What score would location B need on Proximity to port facilities to change its ranking?