The Dynaco Manufacturing Company is going to build a new plant to manufacture ring bearings (used in automobiles and trucks).

90

The non-economic scores are on a 0 to 100 basis with 100 being best.

a)  Using the factor rating (scoring) method that we learned during the class, which site should Dynaco use based on the above information?  

b)  Suppose that another Critical Success Factor,Profit, is now added to the analysis.  The Profit for Site 1 is $800,000; for Site 2 it is $1,000,000 and for Site 3 it is $700,000.  The weight assigned for the Profitis  0.20. To complete this, the weights for both Labor pool and climateand Community environmentare each reduced by 0.10. Thus the sum of the weights is still 1.0.  Which site should be selected by Dynaco now? 

c) Let’s go back to the original problem where Profitis not included as a factor.  How much would the score for Labor Pool and Climatefor Site 2 have to change so that the total scores for Sites 1 and 2 are the same?