John wishes to use a weighted scoring model to choose between three possible loc
ID: 2747599 • Letter: J
Question
John wishes to use a weighted scoring model to choose between three possible locations for his new plant. The relative weights for each criterion are shown in the following table as are the scores for each method on each criterion. A score of 1 represents unfavorable, 2 satisfactory, and 3 favorable.
Site
Category
Weight
A
B
C
Power availability and reliability
20
3
1
2
Water Supply
15
1
3
3
Proximity to Customers
15
3
1
3
Labor Climate
10
2
3
2
Transportation
10
1
1
1
Fuel in Region
25
3
2
2
Tax policies
5
2
2
3
a. Which method of financing would you choose?
b. What would you recommendation be if the weight for Fuel in Region went down to 10 and the weight for Labor Climate when up to 25?
c. Suppose that site A received a score of 3 for Fuel in Region, would this change your recommendation?
Site
Category
Weight
A
B
C
Power availability and reliability
20
3
1
2
Water Supply
15
1
3
3
Proximity to Customers
15
3
1
3
Labor Climate
10
2
3
2
Transportation
10
1
1
1
Fuel in Region
25
3
2
2
Tax policies
5
2
2
3
Explanation / Answer
a A B C Weight Score Weighted Score Score Weighted Score Score Weighted Score a b a*b c a*c d a*d Power Availability and Reliability 20 3 60 1 20 2 40 Water Supply 15 1 15 3 45 3 45 Proximity to Customers 15 3 45 1 15 3 45 Labor Climate 10 2 20 3 30 2 20 Transportation 10 1 10 1 10 1 10 Fuel in Region 25 3 75 2 50 2 50 Tax policies 5 2 10 2 10 3 15 Composite Weighted Rating 235 180 225 Method A of financing yields the highest result with 235 points. b A B C Weight Score Weighted Score Score Weighted Score Score Weighted Score a b a*b c a*c d a*d Power Availability and Reliability 20 3 60 1 20 2 40 Water Supply 15 1 15 3 45 3 45 Proximity to Customers 15 3 45 1 15 3 45 Labor Climate 25 2 50 3 75 2 50 Transportation 10 1 10 1 10 1 10 Fuel in Region 10 3 30 2 20 2 20 Tax policies 5 2 10 2 10 3 15 Composite Weighted Rating 220 195 225 Method C of financing yields the highest result with 225 points. c No - it does not change the answer as Site A previously had the score of 3 only in Fuel in Region
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