--- title: "Weighted factor rating for choosing a site" subject: "Industrial Engineering and Management" chapter: 2 key: "semester_6/industrial_engineering_and_management:weighted-factor-plant-location-rating" source: https://www.bctengineer.com/q/semester_6/industrial_engineering_and_management/weighted-factor-plant-location-rating site: BCT Engineering --- # Weighted factor rating for choosing a site Industrial Engineering and Management · Chapter 2: Design of Production Systems - Asked in: year not given, 6 marks - Video: [Factor Rating Method in Plant Location, Plant Location Evaluation Methods, Business Operations bcom](https://www.youtube.com/watch?v=jl1fHbrAIlY) — DWIVEDI GUIDANCE - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_6/industrial_engineering_and_management/weighted-factor-plant-location-rating - Whole chapter: https://www.bctengineer.com/md/semester_6/industrial_engineering_and_management/chapter-2 ## Question 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. | Factor | Weight | Site A | Site B | Site C | |---|---|---|---|---| | Raw material availability | 0.25 | 8 | 6 | 7 | | Labour cost and skill | 0.20 | 6 | 8 | 7 | | Nearness to market | 0.20 | 7 | 5 | 8 | | Power and water | 0.15 | 8 | 7 | 6 | | Transport facilities | 0.12 | 6 | 7 | 9 | | Taxes and government support | 0.08 | 5 | 9 | 6 | ## 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. ## Answer #### 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 $\text{weight} \times \text{score}$, and the site with the largest total is selected. The weights add to $0.25+0.20+0.20+0.15+0.12+0.08 = 1.00$, so the totals are directly comparable. #### Calculation | Factor | Weight | A | B | C | |---|---|---|---|---| | Raw material | 0.25 | 0.25x8 = 2.00 | 0.25x6 = 1.50 | 0.25x7 = 1.75 | | Labour | 0.20 | 0.20x6 = 1.20 | 0.20x8 = 1.60 | 0.20x7 = 1.40 | | Market | 0.20 | 0.20x7 = 1.40 | 0.20x5 = 1.00 | 0.20x8 = 1.60 | | Power and water | 0.15 | 0.15x8 = 1.20 | 0.15x7 = 1.05 | 0.15x6 = 0.90 | | Transport | 0.12 | 0.12x6 = 0.72 | 0.12x7 = 0.84 | 0.12x9 = 1.08 | | Taxes, support | 0.08 | 0.08x5 = 0.40 | 0.08x9 = 0.72 | 0.08x6 = 0.48 | | **Total** | 1.00 | **6.92** | **6.71** | **7.21** | #### 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).** ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. In the weighted factor rating method, how is the weighted score of a site on one factor found? A. Weight + score B. Weight x score C. Score / weight D. Weight - score Answer: B. Weighted score = weight x score, and the totals over all factors are compared. (Key point: Weighted factor method) 2. Why must the weights sum to 1.00? A. So that totals of different sites are directly comparable B. So that every site gets the same score C. So that the cheapest site wins D. So that scores can exceed 10 Answer: A. With weights adding to 1.00, the totals are on the same scale and can be compared directly. (Key point: Weights sum) 3. Which site is selected and with what total? A. Site A, 6.92 B. Site B, 6.71 C. Site C, 6.92 D. Site C, 7.21 Answer: D. Site C scores 7.21, higher than A (6.92) and B (6.71). (Key point: Result) 4. Why should the result be checked for sensitivity? A. Because the weights are subjective and the margin over A is small B. Because scores must be recalculated daily C. Because B is secretly cheapest D. Because weights always sum to more than 1 Answer: A. The margin of 0.29 is small and the weights are subjective, so changing a weight may change the ranking. 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