Question

The local blood donor clinic is considering 3 sites for the location of its new clinic. It has collected the following information. Different SME’s (subject matter experts) scored each of the non-economic factors. So, unfortunately, the scores for the non-economic factors are scaled differently. The scales are indicated on the table. The highest score is always the best value. For each of the Non-economic factors, it is possible to score the maximum for that factor.

                                

Factor	Factor Weight	Scale	Site A	Site B	Site C
Building Cost	0.3		$4 million	$5.0 million	$3.5 million
Non-economic factors
Road Access	0.25	1-4	2.0	3.2	4.0
Bus Access	0.2	1-5	4.0	2.5	1.5
Safety	0.2	1-4	3.5	3.0	4.0
Site Size	0.05	1-3	2.0	1.5	2.5

Using the factor rating (scaling) approach we studied in class and modified as appropriate, which site do you recommend? Why?

Answer 1

Weighted Scores

FACTOR Weight Site A Site B Site C Scale Building Cost 0.3 4*0.3=1.2 5*0.3=1.5 3.5 *0.3=1.05 Non-Economic factors Road Access 0.25 2*0.25=0.5 3.2*0.25=0.8 0.25*4=1 Bus Access 0.2 4*0.2=0.8 2.5*0.2=0.5 1.5*0.2=0.3 Safety 0.2 3.5*0.2=0.7 3*0.2=0.6 4*0.2=0.8 Site Size 0.05 2*0.05=0.1 1.5*0.05=0.075 2.5*0.05=0.125

Total 1    3.3 3.275 3.275

I would recommend Site A since it has the highest total weight i.e 330% which is higher than that of Site B and C.