Calculate the scores for each location and state where the warehouse should be located
Assume that a plant manager has to decide where to locate its warehouse The decision has been narrowed down to choices among the following three cities: Detroit, Cleveland, and St. Louis. The company has weighted each of these criteria in terms of its relative importance in the decision making process, and it has analyzed each potential warehouse location and graded them according to each criteria as shown in the following table.
Decision Criteria Weight Grades for Detroit Grades for Cleveland Grades for
St. Louis
Proximity to suppliers .45 80 70 60
Proximity to customers .35 75 90 80
Land and construction costs .20 60 50 85
Answer:
SDetroit = 74.25
SCleveland = 73
SSt.Louis = 72
Choose Detroit.
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