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Weighted factor rating for choosing a site

Short answer

Multiply each factor weight by the site score and sum; the site with the highest total weighted score is best. Site C has the highest weighted score (7.21) compared to A (6.92) and B (6.71), so select site C.

A company has shortlisted three sites A, B and C for a new plant. The management gives the weights and scores each site out of 10 as follows. Select the best site using the weighted factor rating method.

FactorWeightSite ASite BSite C
Raw material availability0.25867
Labour cost and skill0.20687
Nearness to market0.20758
Power and water0.15876
Transport facilities0.12679
Taxes and government support0.08596

Method

In the weighted factor rating method, each factor is given a weight (sum = 1.00) and each site is scored. The weighted score is weight×score\text{weight} \times \text{score}, and the site with the largest total is selected. The weights add to 0.25+0.20+0.20+0.15+0.12+0.08=1.000.25+0.20+0.20+0.15+0.12+0.08 = 1.00, so the totals are directly comparable.

Calculation

FactorWeightABC
Raw material0.250.25x8 = 2.000.25x6 = 1.500.25x7 = 1.75
Labour0.200.20x6 = 1.200.20x8 = 1.600.20x7 = 1.40
Market0.200.20x7 = 1.400.20x5 = 1.000.20x8 = 1.60
Power and water0.150.15x8 = 1.200.15x7 = 1.050.15x6 = 0.90
Transport0.120.12x6 = 0.720.12x7 = 0.840.12x9 = 1.08
Taxes, support0.080.08x5 = 0.400.08x9 = 0.720.08x6 = 0.48
Total1.006.926.717.21

Decision

Site C has the highest weighted score (7.21), then A (6.92) and B (6.71). Site C is selected. The margin over A is small (0.29), so the result should be checked for sensitivity, e.g. by changing the weight of the raw-material factor, because the weights are subjective.

Answer: Site C, weighted score 7.21 (A = 6.92, B = 6.71).

✓ Answer checked by Claude Opus 5.5 (high effort)

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