Factor Weight East #1 East #2 West Initial cost 8 100 150 140 Traffic 10 40 40 30 Maintenance 6 20 25 18 Dock space 6 25 10 12 Neighborhood 4 12 8 15 a. Using the above factor ratings, calculate the composite score for each location. Location Composite Score East #1 East #2 West b. Determine which location has the highest composite score:

The composite scores are:

East #1 = $1,518

East #2 = $1,842

West = $1,660

East #2 has the highest composite score.

Explanation:

The data can be arranged as follows.

Factor                          Weight              East #1           East #2           West

Initial cost                         8                      100                 150               140

Traffic                               10                      40                  40                 30

Maintenance                    6                       20                  25                 18

Dock space                      6                       25                   10                 12

Neighborhood                 4                        12                    8                  15

(a) Composite score of each location (CS) = ∑ (Weight x Location score)

    East #1 CS = (8 x 100) + (10 x 40) + (6 x 20) + (6 x 25) + (4 x 12) = 1,518

    East #2 CS = (8 x 150) + (10 x 40) + (6 x 25) + (6 x 10) + (4 x 8) = 1,842

    West CS = (8 x 140) + (10 x 30) + (6 x 18) + (6 x 12) + (4 x 15) = 1,660

(b) East #2 has the highest composite score which is 1,842.

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