LOCATION PLANNING- Worked answers for 13-17

LOCATION PLANNING- Worked answers for 13-17 - A location...

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A location factor analysis has been narrowed down to three locations for a new vending machine on campus. The critical factors and the ratings for each location are shown below. The vending machine company feels that each of these factors is basically equal in terms of importance, with the important exception of “Density of Customer Traffic”. Since this is strongly related to how much money the company will earn from the machine, the vending machine company considers “Density of Customer Traffic” to be four times more important than any one of the other factors. FACTOR LOCATION A LOCATION B LOCATION C Public Access (Building Hours) 50 50 90 Electrical Service 80 50 60 Ease of Access for Reloading 90 70 60 Rent on Space 50 50 90 Density of Customer Traffic 80 90 70 Total (With all five factors equal) 350 310 370 Total (With density of customer traffic four times more important) 590 580 580 13. Which of the following statements are true? I. Of the three locations, Locations A and B charge the lowest, and thus most attractive, rent on space for vending machines. II. Location B has the best density of customer traffic of all three potential locations. III. Location C has better electrical service than Location B. a) I only b) I and III only c) II and III only d) II only. e) I, II and III are true Answer: The answer is C II and III only, if we look at the chart provided to us in the question we see that choice III (3) is true because location C electrical service is 60, while location B electrical service is only 50. We then see that choice II (2) is true by looking at the chart and seeing that location B density of
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This note was uploaded on 08/30/2011 for the course MGO 302 taught by Professor Hancock during the Fall '08 term at SUNY Buffalo.

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LOCATION PLANNING- Worked answers for 13-17 - A location...

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