Question

A retail chain company has identified four sites A, B, C and D to open a new retail store. The company has selected four factors as the basis for evaluation of these sites. The factors, their weights, and the score for each site are given in the following table. 

The site that should be selected to open the new retail store is 
 

• A. Site A
• B. Site B
• C. Site C
• D. Site D

Hint:

To evaluate multiple alternatives with multiple criteria, use the weighted sum method by multiplying the scores by their respective weights and summing them to get the total score for each alternative.

Answer 1

The Correct Option is C

To determine the best site for the new retail store, we need to calculate the weighted sum score for each site by multiplying the score for each factor by the respective weight, then summing these products for each site. For Site A: \[ \text{Score}_A = (0.4 \times 60) + (0.1 \times 30) + (0.3 \times 50) + (0.2 \times 40) = 24 + 3 + 15 + 8 = 50 \] For Site B: \[ \text{Score}_B = (0.4 \times 70) + (0.1 \times 80) + (0.3 \times 10) + (0.2 \times 30) = 28 + 8 + 3 + 6 = 45 \] For Site C: \[ \text{Score}_C = (0.4 \times 80) + (0.1 \times 50) + (0.3 \times 40) + (0.2 \times 40) = 32 + 5 + 12 + 8 = 57 \] For Site D: \[ \text{Score}_D = (0.4 \times 50) + (0.1 \times 40) + (0.3 \times 60) + (0.2 \times 20) = 20 + 4 + 18 + 4 = 46 \] The highest score is for Site C, which has a score of 57. Therefore, Site C should be selected to open the new retail store.