Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Question
Chapter 8, Problem 23P
Summary Introduction
Interpretation: The weights needs to be determined based on the given information.
Concept Introduction: The factor rating analysis is a method that helps in comparing the different projects based on the assigned weights which reflects the importance given to the factors.
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An operations manager wants to use factor rating method to decide the location of a new restaurant. Weights of the three factors specified, and the scores of two options are shown in the table below. Which option should the operations manager choose and what is the weighted score of this option?
Factor
Weight
Option 1 Score
Option 2 Score
Proximity to the University
0.5
90
80
Rental Cost
0.3
80
100
Size
0.2
70
70
Option 2, weighted score = 84
Option 2, weighted score = 83
Option 1, weighted score = 83
There is no difference between the two options
Option 1, weighted score = 84
Pizza Hut, with more than 25,000 outlets in the U.S., is planning a new restaurant in Lubbock, Texas. Three locations are being considered. The following table gives the factors for each site.
Using the Factor Rating Method, which site should be selected?
FACTOR
WEIGHT
MALL
Down Town
LCU
Space
0.30
60
50
80
Costs
0.25
40
80
90
Traffic density
0.20
90
70
60
Neighborhood income
0.15
90
70
40
Zoning laws
0.10
70
20
50
The piece of land available is situated on the main road through the area and has great views of MountKinabalu on one side and the valley below on the other side. As the strategic advisor you have been asked to come up with a recommendation whether to develop a 4-star or 5-star property. Due to the fact that the area is near a World Heritage site and due to building height restrictions the total number of rooms for a 4-star hotel would be 300 rooms, whilst for a 5-star property the number of rooms would be 190.
Identify at least THREE (3) strengths and weaknesses each and at least TWO (2) opportunities and threats each for the proposed hotel/resort at that area. (Not for Mount Kinabalu as a tourist attraction!)
Chapter 8 Solutions
Practical Operations Management
Ch. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 1PCh. 8 - Prob. 2PCh. 8 - Prob. 3PCh. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Prob. 6PCh. 8 - Prob. 7P
Ch. 8 - Prob. 8PCh. 8 - Prob. 9PCh. 8 - Prob. 10PCh. 8 - Prob. 11PCh. 8 - Prob. 12PCh. 8 - Prob. 13PCh. 8 - Prob. 14PCh. 8 - Prob. 15PCh. 8 - Prob. 16PCh. 8 - Prob. 17PCh. 8 - Prob. 18PCh. 8 - Prob. 19PCh. 8 - Prob. 20PCh. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Prob. 23PCh. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Prob. 26PCh. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 29PCh. 8 - Prob. 1.1QCh. 8 - Prob. 1.2QCh. 8 - Prob. 1.3QCh. 8 - Prob. 1.4QCh. 8 - Prob. 2.1QCh. 8 - Prob. 2.2QCh. 8 - Prob. 2.3QCh. 8 - Prob. 3.1QCh. 8 - Prob. 3.2QCh. 8 - Prob. 3.3QCh. 8 - Prob. 3.4Q
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