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Question

Sugar Mill Solution
Weighted # trips x-coord y-coord X multiplied Y multiplied
A 90. 10. 21,600. 2,400.
B 320. 140. 60. 44,800. 19,200.
C 450. 20. 70. 9,000. 31,500.
D 120. 50. 20. 6,000. 2,400.
E 60. 100. 80. 6,000. 4,800.
F 140. 10. 120. 1,400. 16,800.
Total 1330. 410. 360. 88,800. 77,100.
Average 68.333 60.
Weighted Average 66.7669 57,9699
Median 665. 50. 60.

Key Term: Center-of-gravity method

29) 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

Answer: 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.

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