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The management of Willy's Kitchen is considering three different locations Heliopolis, Zayed and 5th Settlement for its new store. The management team has identified the
The management of Willy's Kitchen is considering three different locations Heliopolis, Zayed and 5th Settlement for its new store. The management team has identified the five factors listed in the following table as the basis for evaluation, and has assigned weights as shown in the same table. The operations manager has the following pieces of information to rate each location on each factor, on a 10- point basis (higher scores are better): ➔ Concerning the Labor cost at Heliopolis, it costs the business LE 30 per hour, However, for Zayed it's relatively higher as it costs the business round LE 45 per hour. Finally, it incurs the business LE 50 per hour. ➔ The traffic per square meter at Zayed's site is 30 customer per sq. Meter, Heliopolis's traffic 70 customers per sq. M. and 30 Sq. M. for 5th Settlement. ➔ Regarding Proximity to public transportation, it takes two blocks to the proposed Restaurant location at Heliopolis to the nearest bus and metro stations. However, it takes five blocks to the nearest bus station for Zayed and 7 blocks at 5th Settlement. ➔ In addition, for the availability of target segment, Heliopolis has 60% of the requested segment, Zayed has almost 80% and the 5th Settlement has 85%. ➔ Zayed location rental cost is estimated to be around LE 100,000 per month, while Heliopolis costs LE 70,000 and 5th settlement costs LE 105,000 monthly. 6 | P a g e Factor Factor Description Weight 1 Cost of Labors 0.10 2 Traffic per square meter 0.25 3 Proximity to public transportation 0.10 4 Availability of target segment 0.25 5 Rental Cost 0.30 As an operations manager, Willy's Kitchen's management has asked you to use the previous information to: (NOTE: USE THE ABOVE INFORMATION LOGICALLY TO BUILD YOUR OWN STORY OF ANALYSIS i.e., YOU CAN PROPOSE WHATEVER THE SCORES YOU FIND THEM REASONABLE AS LONG AS THEY'RE SUPPORTED BY THE ABOVE-GIVEN INFORMATION)
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a Here are the calculations for the weighted scores of each alternative location Heliopolis Weighted Score Cost of Labor Weight Traffic per sq meter Weight Proximity to public transportation Weight Av...Get Instant Access to Expert-Tailored Solutions
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