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	1-5	2.5	4.0	5.0
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

Factor	Factor weight	Scale	Site A		Site B		Site c
				Wegihted scale		Wegihted scale		Wegihted scale
				(a*b)		(a*c)		(a*d)
Building cost	0.3		$ 4 Million	$1.2 million	$ 5million	$1.2 Million	$ 3.5 Million	$1.05 Million
	(a)		(b)		c)		d)
Non Economic factor
Road Access	0.25	1-5	2.5	0.625	4	1	5	1.25
Busy Access	0.2	1-5	4	0.8	2.5	0.5	1.5	0.3
Safety	0.2	1-4	3.5	0.7	3	0.6	4	0.8
Site Size	0.05	1-3	2	0.1	1.5	0.075	2.5	0.125
Total Non Economic factor				2.225		2.175		2.475
As per calculation made in above table Site C is best because factor of building cost is less and Non Econmic factor is highest as compare with other