A major problem in a plant location decision based on the factor-rating system is that simple point-rating schemes do not account for the wide variance of costs that may occur within each factor used in the analysis.Question 33Answera.TRUEb.FALSE

When various alternatives for the location are compared in terms of cost & volume then which method is followed? ans. Centroid Method Break Even Analysis Factor Rating System Minimax Model

When using the factor-rating method to assist in a decision-making process, it is important to assign weights to each criterion beforescoring the supplier options, thereby eliminating possible manipulation of the process.

As per the point rating method, the best site to locate a new plant isWhere the maximum points for each factor and points assigned for each site with respect to different factors are given in the table below.

Which Method helps in selecting the best location which is finalised from the shortlisted ones? ans. Weighted Factor Rating Method Load Distance Method Simple Median Model Factor Rating System

For selecting a location the _____ serves a solution as it minimises the distance between the facility and for future existing location. ans. Minimax Location Model Load Distance Method Weighted Factor Rating Method Transportation Problem