We need to make a decision on the location of a factory, and for that we use Factor Rating.

We assume that we would like to give the following ratings:

25% weight for proximity to major stores

35% weight when entering the next port (due to supplies)

20% weight due to start-up costs

20% weight due to variable costs

Option A scores 8.5 for proximity to major shops, 6.0 for access to airports, 7.5 for start-up costs and 9.5 for variable costs.

Option B scores 5.0 for proximity to major shops, 9.0 for access to the nearest port, 8.0 for initial costs and 6.5 for variable costs.

Calculate with a weighted average which option is more respectable.

Option A scores 8.5 for proximity to major shops, 6.0 for access to airports, 7.5 for start-up costs