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s a 30% import tax, which firm should Tmal g,4 ndia, and there %im destination i

ID: 2561518 • Letter: S

Question





s a 30% import tax, which firm should Tmal g,4 ndia, and there %im destination is New choose? -8.34 relate to Methods of Evaluating Location Altermatives Problems 8.5-8 tions are being oreach siteconsideurantth hway, with more than 25,000 outlets in the U.S., is 8.5 ra ne restaurant in Buffalo, New York. Three loca- 8.5 g for a nsidered. The following table gives the factors plamhare being cons NORTHSIDE WEIGHTMA FACTOR Space Costs Traffic density 20 Neighborhood MALL 80 30 60 .30 60 40 50 70 80 80 .25 .15 50 70 40 ncome 80 20 90 Zoning laws a) At which site should Subway open the new restaurant? b) If the weights for Space and Traffic density are reversed, ho 10 would this affect the decision? Px

Explanation / Answer

Maitland

Maitland

factor

weight

factor for sight = mailland

factor*weight

factor

weight

factor for sight = mailland

factor*weight

space

0.3

60

18

space

0.2

60

12

cost

0.25

40

10

cost

0.25

40

10

traffic density

0.2

50

10

traffic density

0.3

50

15

neighbourhood income

0.15

50

7.5

neighbourhood income

0.15

50

7.5

zoning laws

0.1

80

8

zoning laws

0.1

80

8

total score

53.5

total score

52.5

Baptist chruch

Baptist chruch

factor

weight

factor for sight

factor*weight

factor

weight

factor for sight

factor*weight

space

0.3

70

21

space

0.2

70

14

cost

0.25

80

20

cost

0.25

80

20

traffic density

0.2

80

16

traffic density

0.3

80

24

neighbourhood income

0.15

70

10.5

neighbourhood income

0.15

70

10.5

zoning laws

0.1

20

2

zoning laws

0.1

20

2

total score

69.5

total score

70.5

Northside mall

Northside mall

factor

weight

factor for sight

factor*weight

factor

weight

factor for sight

factor*weight

space

0.3

80

24

space

0.2

80

16

cost

0.25

30

7.5

cost

0.25

30

7.5

traffic density

0.2

60

12

traffic density

0.3

60

18

neighbourhood income

0.15

40

6

neighbourhood income

0.15

40

6

zoning laws

0.1

90

9

zoning laws

0.1

90

9

total score

58.5

total score

56.5

Sight

total score

Sight

total score

Maitland

53.5

Maitland

52.5

Baptist chruch

69.5

Baptist chruch

70.5

Northside mall

58.5

Northside mall

56.5

Highest score is in favor of Baptist chruch so it should be selected as location

No it would not change the decision

Maitland

Maitland

factor

weight

factor for sight = mailland

factor*weight

factor

weight

factor for sight = mailland

factor*weight

space

0.3

60

18

space

0.2

60

12

cost

0.25

40

10

cost

0.25

40

10

traffic density

0.2

50

10

traffic density

0.3

50

15

neighbourhood income

0.15

50

7.5

neighbourhood income

0.15

50

7.5

zoning laws

0.1

80

8

zoning laws

0.1

80

8

total score

53.5

total score

52.5

Baptist chruch

Baptist chruch

factor

weight

factor for sight

factor*weight

factor

weight

factor for sight

factor*weight

space

0.3

70

21

space

0.2

70

14

cost

0.25

80

20

cost

0.25

80

20

traffic density

0.2

80

16

traffic density

0.3

80

24

neighbourhood income

0.15

70

10.5

neighbourhood income

0.15

70

10.5

zoning laws

0.1

20

2

zoning laws

0.1

20

2

total score

69.5

total score

70.5

Northside mall

Northside mall

factor

weight

factor for sight

factor*weight

factor

weight

factor for sight

factor*weight

space

0.3

80

24

space

0.2

80

16

cost

0.25

30

7.5

cost

0.25

30

7.5

traffic density

0.2

60

12

traffic density

0.3

60

18

neighbourhood income

0.15

40

6

neighbourhood income

0.15

40

6

zoning laws

0.1

90

9

zoning laws

0.1

90

9

total score

58.5

total score

56.5

Sight

total score

Sight

total score

Maitland

53.5

Maitland

52.5

Baptist chruch

69.5

Baptist chruch

70.5

Northside mall

58.5

Northside mall

56.5

Highest score is in favor of Baptist chruch so it should be selected as location

No it would not change the decision