Consolidated Refineries, headquartered in Houston, must decide among three sites for the construction of a new oil-

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Consolidated Refineries, headquartered in Houston, must decide among three sites for the construction of a new oil- processing center. The firm has selected the six factors listed below. as a basis for evaluation and has assigned rating weights from 1 to 5 on each factor: Factor 1 2 3 4 56 Factor Name Proximity to port facilities Power-source availability and cost Workforce attitude and cost Distance from Houston Rating Weight Community desirability Equipment suppliers in area 422244 5 2 3 Management has rated each location for each factor on a 1- to 100- point basis. Factor Location A Location B Location C 1 100 80 80 2345 2 80 70 100 30 60 70 10 90 28 80 60 60 80 6 50 60 90

a) Which site will be recommended based on total weighted scores?

b) If location B's score for Proximity to port facilities was reset at 90, how would the result change?

c) What score would location B need on Proximity to port facilities to change its ranking?. P

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Operations Management

ISBN: 9780135111437

10th Edition

Authors: Jay Heizer, Barry Render

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