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Location Scoring Method

Raj Equipment Indian Pvt. Ltd., located in Nagpur, Maharashtra, wanted to expand its manufacturing facility and selected three potential locations: Bangalore, Kolkata, and Mumbai. A weighted scoring system was used to evaluate each location based on various factors such as proximity to customers, land and construction costs, wages, taxes, and transportation. Mumbai received the highest overall weighted score of 78.15 while Bangalore received 76.65 and Kolkata received 72.15, making Bangalore the recommended location for expansion.

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Amit Admune
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39 views

Location Scoring Method

Raj Equipment Indian Pvt. Ltd., located in Nagpur, Maharashtra, wanted to expand its manufacturing facility and selected three potential locations: Bangalore, Kolkata, and Mumbai. A weighted scoring system was used to evaluate each location based on various factors such as proximity to customers, land and construction costs, wages, taxes, and transportation. Mumbai received the highest overall weighted score of 78.15 while Bangalore received 76.65 and Kolkata received 72.15, making Bangalore the recommended location for expansion.

Uploaded by

Amit Admune
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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A Toy Manufcaturing company Raj Equipment Indian Pvt. Ltd.

located at Nagpur, Ma
Hence selected three location Bangalore, Kolkata and Mumbai.

factor Weight Mumbai Bangalore


Proximity to customer 0.25 95 90
Land and construction price 0.15 60 60
Wage rate 0.15 70 45
Property tax 0.1 70 90
Business tax 0.1 80 90
Commercial travel 0.1 80 65
Insurance cost 0.08 70 95
Office services 0.07 90 90

Weighted Score
Proximity to customer 23.75 22.5
Land and construction price 9 9
Wage rate 10.5 6.75
Property tax 7 9
Business tax 8 9
Commercial travel 8 6.5
Insurance cost 5.6 7.6
Office services 6.3 6.3
78.15 76.65
ocated at Nagpur, Maharastra wanted to expand its manufacturing facility.

Kolkata
65
90
60
70
85
75
60
80

hted Score
16.25
13.5
9
7
8.5
7.5
4.8
5.6
72.15
location ratings
factor factor rating Unnao Noida
proximity market 3 4 6
proximity to raw material (leather) 5 10 5
transport facilities 4 9 10
basic amentities 2 6 7
acceptance of a leather factory by the local people 4 8 3
availability of cheap land 3 7 2
low construction costs 1 5 1
easy availability of cheap and skillful/ efficient labour 3 3 8
25
location ratings total score
Gorakhpur Unnao Noida Gorakhpur
3 12 18 9
4 50 25 20
5 36 40 20
6 12 14 12
7 32 12 28
8 21 6 24
6 5 1 6
4 9 24 12
177 140 131

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