**Factor-Rating Systems**

Factor-rating systems are probably one of the most widely used location selection techniques because they can combine very diverse issues into an easy-to-understand format. At the same time, it is important to recognize the fact that although the end result from this type of analysis is a quantitative number. factor rating systems are used to evaluate both qualitative and quantitative factors. Another reason that the factor-rating system approach is so popular is that it is relatively simple to use, requiring only six steps.

I. Identify the specific criteria or factors to be considered in selecting a site (see OM in Practice box on Criteria for Selecting a Location for a Back-of-the-House Service Operation).

2. Assign a weight to each factor indicating its importance relative to all of the other factors that are being considered.

3. Select a common scale for rating each factor (for example. 1-] 00)

4. Rate each potential location on each of the factors.

5. Multiply each factor's score by the weight assigned to that factor.

6. Sum up the weighted scores for all of the factors and select that location with the

highest total score.