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Problem 1

Luxury Hotels Inc. is looking to relocate its reservations call center and has identified the following factors and respective weights for evaluating each potential site:

Problem 1

Problem 1

A consultant has identified the following three sites and has rated each of these locations on the above factors as follows:

Factor                                                             Ratings Site A                              Ratings Site B                            Ratings Site C

Available workforce                                            65                                                  80                                                   90
Level of skills                                                          50                                                  45                                                    75
Telecommunication infrastructure                90                                                  70                                                    40
Cost of lab Or                                                          75                                                  90                                                     85
Access to major highways                                  80                                                  85                                                      55

a. Which site would you recommend for locating the call center?

b. How much does the rating for the labor cost factor have Ii'I increase for site A so that the cores for sites A and B are the same?

c. How much does the weight for the infrastructure factor have to increase before site A become the preferred location for the call center?

Solution:

a. We set up the following spreadsheet to calculate the scores for each location:

Solution

Solution

Based upon this analysis. we recommend that the new call center be located at site B, which has the highest score of 12,850.

b. To determine the rating for the labor cost factor at site A that makes the scores for sites A and B identical, we again use a spreadsheet and increase ~e labor cost rating for site A until the scores for the two sites are the same. The desired labor cost rating for site A is 82, as illustrated in the following spreadsheet:

solution 2.0

solution 2.0

c. As shown in the spreadsheet below, the weight for the infrastructure has to be increased to 63 before  site A becomes the preferred location.

solution 2.2

solution 2.2

 

Posted by: anderson

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