Daniel Tracy, owner of Martin Manufacturing, must expand by building a new factory. The search for a

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Daniel Tracy, owner of Martin Manufacturing, must expand by building a new factory. The search for a location for this factory has been narrowed to four sites: A, B, C, or D. The follow- ing table shows the results thus far obtained by Tracy by using the factor-rating method to analyze the problem. The scale used for each factor scoring is 1 through 5.

Site Scores Factor Weight A B C D Quality of labor 10 5 4 4 5 Construction cost 8 2 3 4 1 Transportation costs .8 3 4 3 2 Proximity to markets 7 5 3 4 4 Taxes 6 2 3 3 Weather 6 2 5 Energy costs 5 5 4 353 5 3 443 4 3

a) Which site should Tracy choose?

b) If site D's score for Energy costs increases from a 3 to a 5, do results change?

c) If site A's Weather score is adjusted to a 4, what is the impact? What should Tracy do at this point? P

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Operations Management

ISBN: 9780135111437

10th Edition

Authors: Jay Heizer, Barry Render

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