Urban Outfitters is considering two different locations for

Urban Outfitters is considering two different locations for a new retail outlet. They have identified the four factors listed in the following table as the basis for evaluation, and have assigned weights as shown. The manager has rated each location on each factor, on a 100-point basis, as shown under the respective columns for Sanger and Corinth.

Solution

Note: Table discussed in the question is not provided as a part of question. Thus, sample table is built / taken to solve the problem.

Factor

Factor description (F)

Weight (W)

Sanger

Corinth

1

Income of community

0.40

25

35

2

Growth prospects or potential of the community

0.25

40

30

3

Transportation facilities available

0.15

20

30

4

Cost of labor available for at the location

0.20

15

25

Here, score is calculated on the basis of composite rating through weighted average method.

Score for Corinth = W1*F1 + W2*F2 + W3*F3 + W4*F4

Score for Corinth = .4*35 + .25*30 + .15*30 + .2*25

Score for Corinth = 31

Similarly, score of Sanger can also be calculated.

Score for Sanger = .4*25 + .25*40 + .15*20 + .2*15

Score for Sanger = 26