In deciding on where to locate their next grocery store, Publix narrowed it down to 3 locations (St. Augustine, the Airport area, or the Westside). They are using 2 criteria to make their decisions costs (with a weight of 70%) and customer base (with a weight of 30%). Each item was scored on a 10-point scale with 10 being the highest. St. Augustine rated a score of 4 for cost and 10 for customer base; the Airport area rated a score of 6 for cost and 5 for customer base; and the Westside rated a score of 8 for cost and 2 for customer base.__________ 5a. What is the computed mean score for each of the 3 locations?__________ 5b. Which location should be chosen based on the highest score?

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Asked Jan 19, 2020
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In deciding on where to locate their next grocery store, Publix narrowed it down to 3 locations (St. Augustine, the Airport area, or the Westside). They are using 2 criteria to make their decisions costs (with a weight of 70%) and customer base (with a weight of 30%). Each item was scored on a 10-point scale with 10 being the highest. St. Augustine rated a score of 4 for cost and 10 for customer base; the Airport area rated a score of 6 for cost and 5 for customer base; and the Westside rated a score of 8 for cost and 2 for customer base.
__________ 5a. What is the computed mean score for each of the 3 locations?
__________ 5b. Which location should be chosen based on the highest score?

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Expert Answer

Step 1

Publix points out three new locations to open its new grocery store. The three places they decided is St. Augustine, the Airport area, and the Westside. They will measure the places on the basis of two points one is decision cost (weight of 70 %) and another one is the customer base (weight is 30%). Each item will be measured on a scale of 10.

Given:

  • Augustine scored 4 for cost, and for the customer base, it is10.
  • The Airport area scored 6 for cost, and for the customer base, it is 5.
  • The Westside scored 8 for cost, and for the customer base, it is 2.
Step 2
Operations Management homework question answer, step 2, image 1
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