6. A major retailer is planning to build a new distribution warehouse inDK. Five possible sites have been identified: Alverscombe, Benfield, Cadthorpe, Derrington and Eltin. The choice of site will be based on four attributes: i) Costs ii) Distance from nearest motorway iii) Availability of a local labour force and iv) Scope for future expansion. The costs have been discounted to present value, while scores have been assigned to the options to measure their performance on the non-monetary attributes (100- best on that attribute, 0 worst). The results are shown below Site Costs Distance Labour Expansi Tm 12,1 8,5 14,7 9.9 11,0 100 Iverscombe Benfield 30 70 100 30 0 100 50 60 100 Eltin The retailer was asked to consider a hypothetical site that had Eltin's distance from the motorway, Alverscombe's labour availability and Eltin's scope for expansion. She was then asked, if she could improve the site so that its performance on just one of these attributes was equivalent to the best option on that attribute, which attribute would she choose? She indicated that improving the distance from the motorway was the most desirable change. Similar improvements to labour availability and scope for expansion were respectively considered to be 70% and 30% as desirable as the a) Aggregate scores for the non-monetary attributes have been calculated and these are shown below (the score for Alverscombe is missing) Si Alverscombe Benfield Cadthorpe 47.0 82.5 70.5 35.0 Calculate the aggregate score for Alverscombe. b) Identify the site (or sites) on the efficient frontier c) If a site had the worst scope for expansion, the retailer would be prepared to pay an extra $3m to improve the site so that it had the best scope for expansion, all else remaining equal. Does that affect the selection of site? 6. A major retailer is planning to build a new distribution warehouse inDK. Five possible sites have been identified: Alverscombe, Benfield, Cadthorpe, Derrington and Eltin. The choice of site will be based on four attributes: i) Costs ii) Distance from nearest motorway iii) Availability of a local labour force and iv) Scope for future expansion. The costs have been discounted to present value, while scores have been assigned to the options to measure their performance on the non-monetary attributes (100- best on that attribute, 0 worst). The results are shown below Site Costs Distance Labour Expansi Tm 12,1 8,5 14,7 9.9 11,0 100 Iverscombe Benfield 30 70 100 30 0 100 50 60 100 Eltin The retailer was asked to consider a hypothetical site that had Eltin's distance from the motorway, Alverscombe's labour availability and Eltin's scope for expansion. She was then asked, if she could improve the site so that its performance on just one of these attributes was equivalent to the best option on that attribute, which attribute would she choose? She indicated that improving the distance from the motorway was the most desirable change. Similar improvements to labour availability and scope for expansion were respectively considered to be 70% and 30% as desirable as the a) Aggregate scores for the non-monetary attributes have been calculated and these are shown below (the score for Alverscombe is missing) Si Alverscombe Benfield Cadthorpe 47.0 82.5 70.5 35.0 Calculate the aggregate score for Alverscombe. b) Identify the site (or sites) on the efficient frontier c) If a site had the worst scope for expansion, the retailer would be prepared to pay an extra $3m to improve the site so that it had the best scope for expansion, all else remaining equal. Does that affect the selection of site