Homework SourseProblem 12 Arsenal Electronics is going to construct a new 1
Problem 12.
Arsenal Electronics is going to construct a new $1.2 billion semiconductor plant and has selected four towns in the Midwest as potential sites. The important location factors and ratings for each town are as follows:
Scores (0 to 100)
Location Factor
Weight
Abbeton
Bayside
Cane Creek
Dunnville
Work ethics
0.18
80
90
70
75
Quality of life
0.16
75
85
95
90
Labor laws/unionization
0.12
90
60
60
70
Infrastructure
0.10
60
50
60
70
Education
0.08
80
90
85
95
Labor skill and education
0.07
75
65
70
80
Cost of living
0.06
70
80
85
75
Taxes
0.05
65
70
55
60
Incentive package
0.05
90
95
70
80
Government regulations
0.03
40
50
65
55
Environmental regulations
0.03
65
60
70
80
Transportation
0.03
90
80
95
80
Space for expansion
0.02
90
95
90
90
Urban proximity
0.02
60
90
70
80
Recommend a site based on these location factors and ratings.
| Scores (0 to 100) | |||||
|---|---|---|---|---|---|
| Location Factor | Weight | Abbeton | Bayside | Cane Creek | Dunnville |
| Work ethics | 0.18 | 80 | 90 | 70 | 75 |
| Quality of life | 0.16 | 75 | 85 | 95 | 90 |
| Labor laws/unionization | 0.12 | 90 | 60 | 60 | 70 |
| Infrastructure | 0.10 | 60 | 50 | 60 | 70 |
| Education | 0.08 | 80 | 90 | 85 | 95 |
| Labor skill and education | 0.07 | 75 | 65 | 70 | 80 |
| Cost of living | 0.06 | 70 | 80 | 85 | 75 |
| Taxes | 0.05 | 65 | 70 | 55 | 60 |
| Incentive package | 0.05 | 90 | 95 | 70 | 80 |
| Government regulations | 0.03 | 40 | 50 | 65 | 55 |
| Environmental regulations | 0.03 | 65 | 60 | 70 | 80 |
| Transportation | 0.03 | 90 | 80 | 95 | 80 |
| Space for expansion | 0.02 | 90 | 95 | 90 | 90 |
| Urban proximity | 0.02 | 60 | 90 | 70 | 80 |
Solution
The site with the highest total weighted score (sum of all weighted score) will be selected.
Wighted score = score*weight.
Dunnville has the highest total wieghted score of 77.85. Hence it should be selected as the site.
| Location Factor | Weight | Abbeton | Bayside | Cane Creek | Dunnville |
| weight*score | |||||
| Work ethics | 0.18 | 14.4 | 16.2 | 12.6 | 13.5 |
| Quality of life | 0.16 | 12 | 13.6 | 15.2 | 14.4 |
| Labor laws/unionization | 0.12 | 10.8 | 7.2 | 7.2 | 8.4 |
| Infrastructure | 0.1 | 6 | 5 | 6 | 7 |
| Education | 0.08 | 6.4 | 7.2 | 6.8 | 7.6 |
| Labor skill and education | 0.07 | 5.25 | 4.55 | 4.9 | 5.6 |
| Cost of living | 0.06 | 4.2 | 4.8 | 5.1 | 4.5 |
| Taxes | 0.05 | 3.25 | 3.5 | 2.75 | 3 |
| Incentive package | 0.05 | 4.5 | 4.75 | 3.5 | 4 |
| Government regulations | 0.03 | 1.2 | 1.5 | 1.95 | 1.65 |
| Environmental regulations | 0.03 | 1.95 | 1.8 | 2.1 | 2.4 |
| Transportation | 0.03 | 2.7 | 2.4 | 2.85 | 2.4 |
| Space for expansion | 0.02 | 1.8 | 1.9 | 1.8 | 1.8 |
| Urban proximity | 0.02 | 1.2 | 1.8 | 1.4 | 1.6 |
| Total | 1 | 75.65 | 76.2 | 74.15 | 77.85 |
