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A British hospital chain wishes to make its first entry into the U.S. market by building a medical facility in the Midwest, a region with which its director, Doug Moodie, is comfortable because he got his medical degree at Northwestern University.

After a preliminary analysis, four cities are chosen for further consideration. They are rated and weighted according to the factors shown below:

FACTOR WEIGHT  CHICAGO MILWAUKEE MADISON DETROIT
Costs 2 8 5 6 7
Need for a facility 1.5 4 9 8 4
Staff availability 1 7 6 4 7
Local incentives 0.5 8 6 5 9

a) Which city should Moodie select?

b) Assume a minimum score of 5 is now required for all factors. Which city should be chosen?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92163021

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