Given that all the sites have basically the same leasing costs and labor and operating costs, advice ABC on where to locate the new store.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter6: Optimization Models With Integer Variables
Section: Chapter Questions
Problem 100P
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Question
ABC is a small chain of stores specializing in casual
cotton clothing. The co. currently has 5 stores and
wants to open a new one in one of 3 locations. Five
factors are being considered for this decision. The
weights and scores assigned by a hired consultant
are as follows;
Location factor
College proximity
Median income
Vehicle traffic
Mall quality & size
Proximity to shopping
Weight
0.30
0.25
0.25
0.10
0.10
Scores (0 to 100)
Mall 1 Mall 2 Mall 3
90
65
79
80
50
40 60
75 80
60
90
90
100
80
30
Required
Given that all the sites have basically the
same leasing costs and labor and
operating costs, advice ABC on where to
locate the new store.
Transcribed Image Text:ABC is a small chain of stores specializing in casual cotton clothing. The co. currently has 5 stores and wants to open a new one in one of 3 locations. Five factors are being considered for this decision. The weights and scores assigned by a hired consultant are as follows; Location factor College proximity Median income Vehicle traffic Mall quality & size Proximity to shopping Weight 0.30 0.25 0.25 0.10 0.10 Scores (0 to 100) Mall 1 Mall 2 Mall 3 90 65 79 80 50 40 60 75 80 60 90 90 100 80 30 Required Given that all the sites have basically the same leasing costs and labor and operating costs, advice ABC on where to locate the new store.
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