A company is considering Pittsburgh, Philadelphia, and Baltimore as candidate lo

Question

A company is considering Pittsburgh, Philadelphia, and Baltimore as candidate locations for a new facility. For the weighted-factor rating technique, the company is evaluating each location on three factors (distance to customers, labor costs, and utility costs). The factors are weighted 0.5, 0.3, and 0.2, respectively. Pittsburgh received scores of 90, 75, and 65 for the three factors. Philadelphia received scores of 85, 82, and 70. Baltimore received scores of 82, 85, and 75. Which of the three cities is ranked second by the weighted-factor rating technique?

Explanation / Answer

d. Philadelphia

Weighted Factor score for Pittsburgh = 0.5 * 90 + 0.3 * 75 + 0.2 * 65

= 45 + 22.5 + 13

= 80.5

For Philadelphia = 0.5 * 85 + 0.3 * 82 + 0.2 * 70

= 42.5 + 24.6 + 14

= 81.1

For Baltimore = 0.5 * 82 + 0.3 * 85 + 0.2 * 75

= 41 + 25.5 + 15

= 81.5

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