John and Jane Darling are newlyweds trying to decide among several available rentals. Alternatives were scored on a scale of 1 to 5 (5 = best) against weighted performance criteria, as shown in Table 11.6. The criteria included rent, proximity to work and recreational opportunities, security, and other neighborhood characteristics associated with the couple’s values and lifestyle. Alternative A is an apartment, B is a bungalow, C is a condo, and D is a downstairs apartment in Jane’s parents’ home.
Which location is indicated by the preference matrix?
What qualitative factors might cause this preference to change?
Two alternative locations are under consideration for a new plant: Jackson, Mississippi, and Dayton, Ohio. The Jackson location is superior in terms of costs. However, management believes that sales volume would decline if this location were chosen because it is farther from the market, and the firm’s customers prefer local suppliers. The selling price of the product is $250 per unit in either case. Use the following information to determine which location yields the higher total profit per year: