Factor Rating Method
The process of selecting a new facility location involves a series of following steps:
- Identify the important location factors.
- Rate each factor according to its relative importance, e., higher the ratings is indicative of prominent factor.
- Assign each location according to the merits of the location for each factor.
- Calculate the rating for each location by multiplying factor assigned to each location with basic factors considered.
- Find the sum of product calculated for each factor and select best location having highest total score.
Weighted Factor Rating Method
In this method to merge quantitative and qualitative factors, factors are assigned weights based on relative importance and weightage score for each site using a preference matrix is calculated. The site with the highest weighted score is selected as the best choice.