A manager has received an analysis of several cities being considered for a new order fulfillment center (warehouse) for Shop at Home Network. The scores (scale is 10 points = best) are contained in the table below
a. If the manager weights the factors equally, how would the locations be ranked?
b. If transportation costs and operating costs are given weights that are double the weights of the others, should the locations be ranked differently?
Location
Factor W X Y Z
Business services 7 9 5 4
Community services 5 7 6 7
Real estate cost 7 3 8 6
Construction costs 8 6 6 5
Operating costs 5 4 7 6
Business taxes 6 9 6 4
Transportation costs 8 6 7 8
The locations are ranked W, Y, X, Z with equal weights; but W and Y tie for highest, and Z and X tie for lowest as revised.
Factor Weight W X Y Z
Business services 1 7 9 5 4
Community services 1 5 7 6 7
Real estate cost 1 7 3 8 6
Construction costs 1 8 6 6 5
Operating costs 1 5 4 7 6
Business taxes 1 6 9 6 4
Transportation costs 1 8 6 7 8
Total 7 46 44 45 40
Weighted average 6.579 6.286 6.429 5.714
Weight W X Y Z
Business services 1 7 9 5 4
Community services 1 5 7 6 7
Real estate cost 1 7 3 8 6
Construction costs 1 8 6 6 5
Operating costs 2 5 4 7 6
Business taxes 1 6 9 6 4
Transportation costs 2 8 6 7 8
Total 9
Weighted sum 59 54 59 54
Weighted average 6.56 6 6.56 6
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