Question

A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below:

		Location
Factor	Wt.	A	B	C
Labor Cost	.4	70	80	90
Transportation Cost	.2	80	80	60
Market Access	.2	90	70	60
Raw Materials Cost	.1	50	70	90
Utility Cost	.1	80	90	70

If the selection criterion is to be the greatest composite score, management should choose:

		location A.
		location B.
		location C.
		either location B or location C.
		to reject all locations.

Answer 1

First we need to need to find out the average for each location by multiplying the weights with the ratings of each location then we need to convert them into composite score then we need to select the location with the best composite score
As you can clearly see that the composite score of the location B is more then any other location therrfore the option 2 that is location B is correct.