Question
Mazi, Inc., an Upstate New York company is expanding their business to four States (Pennsylvania, New Jersey, Connecticut, Massachusetts). Part of this expansion includes having
Mazi, Inc., an Upstate New York company is expanding their business to four States (Pennsylvania, New Jersey, Connecticut, Massachusetts). Part of this expansion includes having a supply chain warehouse that would be able to meet the demands of the company's recently increasing market share in these four Sates. The company is considering options to either build a warehouse in Harrisburg, Pennsylvania or Piscataway, New Jersey, or purchase/renovate existing warehouse in Danbury, Connecticut or Haverhill, Massachusetts. The company is expected to choose one of the options to having its own warehouse, and has outlined several criteria that it considers important. The relative weights of each criterion are shown below, as well as the numerical scores assigned to each criterion.
Required:
- Use the weighted criteria model to determine the best option to select in building or purchase/renovate the warehouse
- Show all formula used in your calculations, including the actual calculations in order to receive full points
Options | |||||
Criteria | Weight % | Purchase/ Renovate in Danbury, Connecticut | Purchase/ Renovatein Haverhill, Massachusetts | Build in Harrisburg, Pennsylvania | Build in Piscataway, New Jersey |
Has strong senior management internal support | 20 | 70 | 90 | 90 | 20 |
Ease of access to major markets | 20 | 90 | 50 | 50 | 20 |
Supports company's key business objectives | 25 | 90 | 50 | 90 | 20 |
Project can be completed and implemented in one year | 5 | 20 | 50 | 20 | 90 |
Uses realistic levels of technology | 10 | 90 | 50 | 50 | 70 |
Provides tax considerations benefits | 15 | 70 | 50 | 50 | 50 |
Has low risk in meeting project scope, time, and cost goals | 5 | 50 | 50 | 20 | 90 |
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