A medical clinic is considering 3 sites for the location of its new clinic. It has collected the following information. The scores for the non-financial data are on a 0-3 scale with three being best. It is possible to score a 3.0 for any of the factors.
Factor Factor Weight Downtown Midtown Suburb Building Cost 0.30 $5 million $6 million $4.5 million Road Access 0.25 1.5 3.0 2.4 Bus Access 0.20 3.0 1.8 1.2 Safety 0.20 1.8 2.4 3.0 Site Size 0.05 2.4 1.2 2.4
a) Using the factor scoring (factor rating) approach as we studied in class, which site do you recommend? Why?
b) Suppose that the clinic wants to add another factor, Profit, to its analysis. This factor would be assigned a weight of 0.20 by reducing the Road Access factor weight to 0.05. The values of the Profit for each site are as follows:
Site A: $6.0 million Site B: $4.0 million Site C: 3.0 million
Using the factor scoring (factor rating) method with this additional information, which site is now recommended? Why?