Question

Nina has been asked to lead a team that has been tasked with finding a new location for a boutique would like to test. The team has identified four candidate shopping cent ers to locate the new boutique in. Some cater to a higher class of clientele than others, some are in an indoor mall, some have a much greater vol ume than others, and, of course, rent varies con- siderably. Because of the nature of the boutique, the team has decided that the class of clientele is the most important consideration. Following this, the team considered expenses and rent as the next most important criterion probably 90 percent as important as clientele. An indoor, temperature controlled mall is a big help for stores such as the concept being considered where 70 percent of sales are from passersby slowly strolling and window shopping. Thus, the team rates this as about 95 percent as important as rent. Last, a higher volume of shoppers means more potential sales thus the rates this factor as 80 percent as important as concept her company rent. As an aid in visualizing her location alterna- tives, the team has constructed the following table. A "good" is scored as 3, "fair" as 2, and "poor" as 1 Use a weighted score model to help Nina and her team come to a decision. Location 3 Class of clientele fair ood poor good good POor oor good fai od poor good air good poor d poor poor good Rent Indoor mall Volume

Answer 1

As a first step we will have to get the weightage of each of the parameter / selection criteria.

Let's assign a 100.00% weightage to class of clientele.

Weightage for rent = 90% x weightage of class of clientele = 100% x 90% = 90.00%

Weightage for indoor mall = 95% x weightage of rent = 95% x 90% = 85.50%

Weightage for volume = 80% x weightage of rent = 80% x 90% = 72.00%

Let's now develop the weighted score for each of the location. Please see the table below for location 1:

Location 1	Weightage	Rating	Score	Weighted score
Parameter	W		S	W x S
Class of clientele	100.00%	Fair	2	2.000
Rent	90.00%	Good	3	2.700
Indoor Mall	85.50%	Good	3	2.565
Volume	72.00%	Good	3	2.160
Total				9.425

Please see table below for location 2:

Location 2	Weightage	Rating	Score	Weighted score
Parameter	W		S	W x S
Class of clientele	100.00%	Good	3	3.000
Rent	90.00%	fair	2	1.800
Indoor Mall	85.50%	poor	1	0.855
Volume	72.00%	fair	2	1.440
Total				7.095

Please see table below for location 3:

Location 3	Weightage	Rating	Score	Weighted score
Parameter	W		S	W x S
Class of clientele	100.00%	poor	1	1.000
Rent	90.00%	poor	1	0.900
Indoor Mall	85.50%	good	3	2.565
Volume	72.00%	good	3	2.160
Total				6.625

Please see table below for location 4:

Location 4	Weightage	Rating	Score	Weighted score
Parameter	W		S	W x S
Class of clientele	100.00%	good	3	3.000
Rent	90.00%	good	3	2.700
Indoor Mall	85.50%	poor	1	0.855
Volume	72.00%	poor	1	0.720
Total				7.275

Since location 1 has highest weighted score of 9.425 amongst all the locations, the team should choose location 1.