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Mawar Sari Berhad, a company producing cosmetics, has plants in Jitra and Alor Setar. The company intends to expand its operation by opening up
Mawar Sari Berhad, a company producing cosmetics, has plants in Jitra and Alor Setar. The company intends to expand its operation by opening up a new plant. It has identified four locations: Baling, Kodiang, Sungai Petani and Kulim. The following annual costs and non-economic data were gathered. Tangible Baling Factor Kodiang Sungai Petani Kulim (RM'000) Labour 350 360 375 380 Raw materials 400 3 375 395 368 Rental 10.0 10.5 11.5 11.0 Intangible Factor Baling Kodiang Sungai Kulim Petani Labour availability Very good Fair Good Good Community Outstanding Poor Fair Very good acceptance Quality of life Poor Outstanding Good Poor Good Very good Outstanding Transportation quality Good Among the intangible factors to be considered, labour availability is the most important factor, followed by transportation quality and quality of life. The least important factor is community acceptance. Based on the annual cost, which location is the most suitable?
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