Two locations are being evaluated based on these factors, using factor rating. Each location has been evaluated relative to the factors on a five-point scale. Use factor rating to help the restaurant decide on the better location. | Factor | Factor Weight | Location 1 | Location 2 | |-------------------------|---------------|------------|------------| | Proximity to customers | 30 | 5 | 2 | | Proximity to competition| 10 | 4 | 2 | | Proximity to labor supply| 30 | 2 | 5 | | Transportation system | 20 | 5 | 3 | | Quality of life | 10 | 3 | 5 |
Answer (1)
To determine the better location for the restaurant using factor rating, we first calculate the weighted scores for each location based on the given factor weights and ratings.
Step-by-step calculation:
Proximity to customers:
Location 1: Weight 30 x Rating 5 = 150
Location 2: Weight 30 x Rating 2 = 60
Proximity to competition:
Location 1: Weight 10 x Rating 4 = 40
Location 2: Weight 10 x Rating 2 = 20
Proximity to labor supply:
Location 1: Weight 30 x Rating 2 = 60
Location 2: Weight 30 x Rating 5 = 150
Transportation system:
Location 1: Weight 20 x Rating 5 = 100
Location 2: Weight 20 x Rating 3 = 60
Quality of life:
Location 1: Weight 10 x Rating 3 = 30
Location 2: Weight 10 x Rating 5 = 50
Total Weighted Scores:
Location 1 Total: 150 + 40 + 60 + 100 + 30 = 380
Location 2 Total: 60 + 20 + 150 + 60 + 50 = 340
Conclusion:
Based on the factor rating, Location 1 has a higher total weighted score (380) compared to Location 2 (340). Therefore, Location 1 would be a better choice for setting up the restaurant based on the given factors and their respective weights.
