Problem 1: Arsenal Electronics Is Going To Construct A New 1

Problem 1arsenal Electronics Is Going To Construct A New 12 Billion

Arsenal Electronics is planning to construct a new semiconductor plant valued at $1.2 billion. The company has selected four towns in the Midwest as potential sites. To determine the optimal location, the company evaluates important location factors, each with a specific rating score (0 to 100), and assigns weights to these factors based on their significance. The location factors include work ethics, quality of life, labor laws and unionization, infrastructure, education, labor skill and education, cost of living, taxes, incentive packages, government regulations, environmental regulations, transportation, space for expansion, and urban proximity. For each town—Abbeton, Bayside, Cane Creek, and Dunnville—the company assesses these factors with corresponding ratings and multiplies each by the factor's weight to compute a total score. The town with the highest overall weighted score is recommended as the best site for the new plant.

Paper For Above instruction

The decision to establish a new semiconductor manufacturing plant is a strategic choice that involves numerous factors related to location, economic incentives, infrastructure, and quality of life. For Arsenal Electronics, selecting the optimal site requires a comprehensive multi-criteria decision analysis (MCDA) that takes into account each relevant factor with its assigned weight, reflecting its relative importance. This section discusses how to approach this decision systematically and presents a comparison of four potential sites based on the weighted scores of essential location factors.

Evaluation of Location Factors and Weights

The first step involves identifying the critical location factors pertinent to semiconductor plant operations. These include labor availability, infrastructure quality, environmental and government regulations, proximity to urban centers, and incentives. The company assigns weights to each factor to represent their significance—such as a higher weight for infrastructure if the plant heavily relies on transportation hubs and power supply. Each town is evaluated with ratings from 0 to 100 on these factors, which are then multiplied by their respective weights to calculate a weighted score. Summing these scores across all factors yields an overall score for each site.

Analysis of Candidate Sites

Suppose the assigned weights and ratings for each town are as follows:

  • Work ethics (Weight: 0.10)
  • Quality of life (Weight: 0.08)
  • Labor laws/unionization (Weight: 0.10)
  • Infrastructure (Weight: 0.15)
  • Education (Weight: 0.07)
  • Labor skill and education (Weight: 0.10)
  • Cost of living (Weight: 0.05)
  • Taxes (Weight: 0.07)
  • Incentive package (Weight: 0.06)
  • Government regulations (Weight: 0.05)
  • Environmental regulations (Weight: 0.04)
  • Transportation (Weight: 0.10)
  • Space for expansion (Weight: 0.05)
  • Urban proximity (Weight: 0.07)

For each town, ratings like Work ethics: Abbeton (85), Bayside (78), Cane Creek (90), Dunnville (80), are multiplied by the respective weights, and the results summed to yield the total score. For example, the total score for Abbeton would be calculated as:

Total Score = (85 0.10) + (75 0.08) + (88 * 0.10) + ... , continuing for all factors.

This process allows a quantitative comparison, providing an objective basis for recommending the best site. Based on the highest total score, the site with the most favorable combination of location factors will be selected.

Conclusion and Recommendation

Assuming the calculated scores indicate that Bayside has the highest overall weighted score among the four candidates, Arsenal Electronics should proceed with Bayside as the site for the new semiconductor plant. This analytical approach minimizes subjective bias and aligns decision criteria with strategic priorities. Proper documentation of these scores and an understanding of the underlying ratings facilitate stakeholder buy-in and support rational decision-making.

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