A salt water taffy manufacturer is exploring the possibility of expanding into t
ID: 332572 • Letter: A
Question
A salt water taffy manufacturer is exploring the possibility of expanding into three different beach markets around the globe. The final decision will be based on the cost of labor, distance to customers, and the stability of the currency.
Using the below table, score each site using the weights and determine the best location.?
SCORES (Maximum 100)
FACTOR
WEIGHT
SITE A
SITE B
SITE C
Labor Cost
0.30
90
80
80
Currency Stability
0.40
80
85
80
Proximity to Market
0.30
80
80
80
SCORES (Maximum 100)
FACTOR
WEIGHT
SITE A
SITE B
SITE C
Labor Cost
0.30
90
80
80
Currency Stability
0.40
80
85
80
Proximity to Market
0.30
80
80
80
Explanation / Answer
Site A
Expected Value = (0.3*90)+(0.4*80)+(0.3*80) = 83
Site B
Expected Value = (0.3*80)+(0.4*85)+(0.3*80) = 82
Site C
Expected Value = (0.3*80)+(0.4*80)+(0.3*80) = 80
The best location based on the sum of weighted scores is Site A with a score of 83
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