Problem 1:
A company is considering 4 western locations for a new training facility. You have recommended that to decide which is best, they use the Factor Rating Method. Upper Management Team provides you with the 6 factors and scores for 4 potential locations as indicated in the table below:
|
Upper Management Team
|
|
|
|
|
|
Factor
|
Weight
|
Phoenix
|
Provo
|
Cheyenne
|
Denver
|
|
Labor Availability
|
0.25
|
80
|
90
|
80
|
85
|
|
Education of Workforce
|
0.1
|
95
|
75
|
70
|
95
|
|
Operating Cost
|
0.15
|
75
|
85
|
85
|
80
|
|
Land and Construction
|
0.1
|
60
|
80
|
90
|
70
|
|
Industrial Incentives
|
0.25
|
60
|
95
|
85
|
60
|
|
Labor Cost
|
0.15
|
90
|
75
|
85
|
85
|
The day before you are ready to present your findings to the Upper Management Team the CEO calls you and says that the Board of Directors expressed some degree of discomfort in making the industrial incentives so important. In fact, they might not even take them if offered, believing there is "no such thing as a free lunch." They believed that the weights instead should be:
|
Board of Directors
|
|
|
Factor
|
Weight
|
|
Labor Availability
|
0.25
|
|
Education of Workforce
|
0.1
|
|
Operating Cost
|
0.3
|
|
Land and Construction
|
0.1
|
|
Industrial Incentives
|
0
|
|
Labor Cost
|
0.25
|
Problem 2:
You have been hired by the Governor help locate the management center for a group of rural healthcare facilities. You have decided to start the process with a Center of Gravity approach. The number of employees from each city's current healthcare center will be used for weighting, as it is those employees that must travel to the management center. You have gathered the following data:
|
City
|
X
|
Y
|
Number of employees
|
|
Montrose
|
4
|
6
|
5
|
|
Durango
|
4
|
0.8
|
7
|
|
Pagosa Springs
|
3
|
0.8
|
18
|
|
Ouray
|
4
|
3.3
|
5
|
|
Monte Vista
|
6.5
|
2
|
5
|
|
Trinidad
|
8
|
0.5
|
5
|
Prepare a bubble chart, weighting the bubbles by the number of employees. Choose an arbitrary weight for the size of the management center. Be sure you clearly identify the x, y coordinates for the training facility.HMW Form based on problems above
1. Using the Upper Management team's factor scores, what is the score for Denver?
2. Using the Board of Director's factor weights, what is the score for Phoenix?
3. Using the Upper Management team's factor weights, you would recommend the following:
Phoenix
Provo
Cheyenne
Denver
None of the above.
4. Using the Board of Director's factor weights, you would recommend?
Phoenix
Provo
Cheyenne
Denver
None of the above.