Alshorouk Inc. is a small but growing company and is currently looking for to add a new site to its existing one. The factors for three locations are stated in the following table with a total sum of weights 100 and maximum score of 5 Factor Factor weight Loc1 Loc2 Loc3 Proximity to ports 15 3 4 4 Proximity to supplier 20 4 2 5 Facility with excess capacity 1 2 5 Facility with potential to expand 5 2 1 Close to highway 15 4 3 3 Environmental issues 10 3 4 3 a- If Alshrouk Inc. is targeting excess capacity, which location would be preferred if the weight of third factor is triple that of the fourth factor b- If shourok Inc is targeting future expansion, what would be the ratio between third and fourth factor to make loc1 preferable

Alshorouk Inc.

a) If Alshrouk Inc. is targeting excess capacity, the location that would be preferred if the weight of third factor is triple that of the fourth factor is:

Loc3

b- If Alshourok Inc is targeting future expansion, the ratio between third and fourth factor to make loc1 preferable would be:

1 : 3

Explanation:

a) Data and Calculations:

Total sum of weights = 100

Maximum score = 5 Factor

Factor weight                                Loc1  Loc2  Loc3

Proximity to ports (15)                      3        4         4

Proximity to supplier (20)                4        2         5

Facility with excess capacity           1         2         5

Facility with potential to expand     5        2         1

Close to highway (15)                      4        3         3

Environmental issues (10)               3        4         3

Total ascribed weight = 60 (15 + 20 + 15 + 10)

Unascribed weight for the third and fourth factors = 40 (100 - 60)

a- If Alshrouk Inc. is targeting excess capacity, which location would be preferred if the weight of third factor is triple that of the fourth factor

Third and fourth factor weights = 3 : 1

Third factor weight = 3/4 * 40 = 30

Fourth factor weight = 1/4 * 40 = 10

Factor weight                                          Loc1             Loc2          Loc3

Proximity to ports (15)                            45 (3*15)     60 (4*15)       60 (4*15)

Proximity to supplier (20)                      80 (4*20)    40 (2*20)     100 (5*20)

Facility with excess capacity (30)          30 (1*30)     60 (2*30)    150 (5*30)

Facility with potential to expand (10)    50 (5*10)     20 (2*10)       10 (1*10)

Close to highway (15)                            60 (4*15)     45 (3*15)       45 (3*15)

Environmental issues (10)                     30 (3*10)     40 (4*10)       30 (3*10)

Total weighted scores                        295            265                395

b) To make loc1 preferable, ratio of third and fourth factor would change to 1:3 and the total weighted scores would become:

Factor weight                                           Loc1             Loc2          Loc3

Proximity to ports (15)                             45 (3*15)     60 (4*15)       60 (4*15)

Proximity to supplier (20)                       80 (4*20)    40 (2*20)     100 (5*20)

Facility with excess capacity (10)            10 (1*10)      20 (2*10)      50 (5*10)

Facility with potential to expand (30)  150 (5*30)     60 (2*30)     30 (1*30)

Close to highway (15)                            60 (4*15)     45 (3*15)       45 (3*15)

Environmental issues (10)                     30 (3*10)     40 (4*10)       30 (3*10)

Total weighted scores                        375             265                315

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

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