# OM 302 HW 2.docx - Homework 2 2.8 Price(0.1 Nearness(0.6...

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Homework 2 2.8 Price (0.1) Nearness (0.6) Technology (0.2) History (0.1) Total England (2) * (0.1) = 0.2 (3) * (0.6) = 1.8 (1) * (0.2) = 0.2 (1) * (0.1) = 0.1 0.2 + 1.8 + 0.2 + 0.1 = 2.3 Canada (3) * (0.1) = 0.3 (1) * (0.6) = 0.6 (3) * (0.2) = 0.6 (2) * (0.1) = 0.2 0.3 + 0.6 + 0.6 + 0.2 = 1.7 a. Using the factor-rating method, Claudia Pragram Technologies Inc. should chose Canada due to its lower risk rating (1.7 versus 2.3). Price (0.2) Nearness (1.2) Technology (0.4) History (0.2) Total England (2) * (0.2) = 0.4 (3) * (1.2) = 3.6 (1) * (0.4) = 0.4 (1) * (0.2) = 0.2 0.4 + 3.6 + 0.4 + 0.2 = 4.6 Canada (3) * (0.2) = 0.6 (1) * (1.2) = 1.2 (3) * (0.4) = 1.2 (2) * (0.2) = 0.4 0.6 + 1.2 + 1.2 + 0.4 = 3.4 b. The effect that doubling each of the weights has on my answer is that the nearness criteria has a lot of weight on the final ratings. If England would have scored a 2 on nearness, the risk would be the same for both countries. It shows how one criteria can have a major impact on the ratings and final decision. 2.9 Mexico Panama Costa Rica Peru Trust (0.4) (0.4) * (1) = 0.4 (0.4) * (2) = 0.8 (0.4) * (2) = 0.8 (0.4) * (1) = 0.4 Quality (0.2) (0.2) * (7) = 1.4 (0.2) * (10) = 2.0 (0.2) * (9) = 1.8 (0.2) * (10) = 2.0 Religious (0.1) (0.1) * (3) = 0.3 (0.1) * (3) = 0.3 (0.1) * (3) = 0.3 (0.1) * (5) = 0.5 Individualism (0.1) (0.1) * (5) = 0.5 (0.1) * (2) = 0.2 (0.1) * (4) = 0.4 (0.1) * (8) = 0.8 Time (0.1) (0.1) * (4) = 0.4 (0.1) * (6) = 0.6 (0.1) * (7) = 0.7 (0.1) * (3) = 0.3 Uncertainty (0.1) (0.1) * (3) = 0.3 (0.1) * (2) = 0.2 (0.1) * (4) = 0.4 (0.1) * (2) = 0.2 Total 0.4 + 1.4 + 0.3 + 0.5 + 0.4 + 0.3 = 3.3 0.8 + 2.0 + 0.3 + 0.2 + 0.6 + 0.2 = 4.1 0.8 + 1.8 + 0.3 + 0.4 + 0.7 + 0.4 =

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• Hebrew numerals, Company C, Factor-Rating Method, Worldwide Delivery

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