A clothing chain is considering two different locations for a new retail outlet. The organization has identified the four factors listed in the following table as the basis for evaluation, and it has assigned weights as shown
The manager has rated each location on each factor, on a 100-point basis (higher scores are better), as shown under the respective columns for Barclay and Chester.
a. Calculate the composite score for each alternative location.
b. Which site should be chosen?
c. Are you concerned about the sensitivity and subjectivity of this solution? Comment.
Factor Factor Description Weight Barclay Chester
1 Average community income .40 75 70
2 Community growth potential .25 60 80
3 Availability of public transportation .15 45 90
4 Labor cost .20 80 60
The higher rated site is Chester, 74.5 to 67.75. There is a margin of nearly seven points, which should overcome most levels of subjectivity. The site factor scores are quite different, so that a small swing in weights could produce swings in scores of a few points, but probably not the seven necessary to reverse the findings.
Weight Barclay Chester
Factor 1 0.40 75 70
Factor 2 0.25 60 80
Factor 3 0.15 45 90
Factor 4 0.20 80 65
Total 1.00
Weighted sum 67.75 74.5
Weighted average 67.75 74.5
You might also like to view...
A system of consciously coordinated activities or forces of two or more people is known as a(n)
A. operation. B. culture. C. organization. D. structure. E. adhocracy.
A property owner is freed from management of a facility in a _____
a. net lease b. graduated lease c. maintenance-increase-recoupment provision d. percentage lease
Characteristics of just-in-time partnerships do NOT include:
A) removal of in-transit inventory. B) large lot sizes to save on setup costs and to gain quantity discounts. C) long-term contracts. D) produce with zero defects. E) focus on core competencies.
According to Henry Shue, who should have responsibility to protect workers from potential harm caused by imported goods? I. The employers of the workers facing the potential harm II. The governments of the people who may be harmed III. The companies importing the goods IV. Consumers who ultimately buy the goods
a. I only b. I and II c. I, II and III d. I, II, III and IV