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Bimbo Bakeries USA of Horsham. PA, the U.S. division of Grupo Bimbo, S.A.B. de CV of Mexico City, Mexico, is considering the expansion of its
Bimbo Bakeries USA of Horsham. PA, the U.S. division of Grupo Bimbo, S.A.B. de CV of Mexico City, Mexico, is considering the expansion of its U.S. bakery operations by selecting a new location from the following places: Memphis, TN, Pittsburgh, PA and Bowling Green, OH. The Chief Operating Officer (COO) of the Company wants broad participation across all functions of the firm in arriving at a decision. You are the Vice President of Operations Management and you decide to use a cross-functional team approach and employ the Factor Rating Method. The "Team" identifies the Key Success Factors (KSF) and assigns weights to each. Each Factor was scored on a scale of 1 to 5 where 5 is the best and 1 is the worst place and the information is shown in the table that follows. Which site is the winner? Factor Weight (%) Memphis, TN Pittsburgh, PA Bowling Green, OH Labor Quality 20 5 4 4 Quality of Life 16 2 3 4 Transportation 16 3 4 3 Proximity to Markets 14 5 3 4 Proximity to Suppliers 12 2 3 3 Taxes 12 2 5 5 Energy Supplies 10 5 4 3 a. Memphis, TN b. Pittsburgh, PA c
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