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CMA Intermediate · Operations Management and Strategic Management · Designing of Operational Systems and Control

A firm compares three sites using a weighted factor rating. Weights: labour 0.5, transport 0.3, power 0.2. Scores out of 100 for Site X are 70, 80, 60; Site Y 90, 60, 50; Site Z 80, 70, 90. Which site should be selected and what is its score?

Site Z should be selected with a weighted score of 79. Multiplying each factor score by its weight gives X 71, Y 73 and Z 79, so Z ranks highest. Site Y at 73 is the next best but still lower.

  1. ASite X with 71
  2. BSite Y with 73
  3. CSite Z with 79Correct
  4. DSite Z with 80

Explanation

X = 35+24+12 = 71. Y = 45+18+10 = 73. Z = 40+21+18 = 79. Z has the highest weighted score. The 80 option comes from the unweighted score of Z's first factor, a wrong base.

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