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