ADDITIVE-DIFFERENCE TASK
YING-YANG CORPORATION
SITE SELECTION
The Ying-Yang Corporation, a franchiser for Chinese restaurants, is expanding its operations. They are in the process of selecting sites for 25 new outlets to be constructed in the Midwest during the next year.
The Ying-Yang management has decided that seven factors are very important in deciding where a Chinese restaurant of the type they have should be located:
1. population density within a 5 mile radius of the restaurant.
2. competitive situation in the Chinese restaurant segment.
3. traffic density on the near-by roads.
4. retail sales in the surrounding community.
5. average income per family within a 5 mile radius.
6. land and building costs for a restaurant.
7. population growth in the area.
The management has studied these seven factors and has determined that they are all equally important in deciding where to locate a restaurant.
The Ying-Yang Corporation hired a consulting firm to evaluate six potential restaurant sites in suburban Indianapolis. The Ying-Yang management requested that the consulting firm score each site on each factor on a 100 point basis. The results of the scoring are shown in the Information Packet.
The Ying-Yang management wanted to select one of these sites for construction. The management evaluated the sites by pair-wise comparison (always comparing two sites at a time). Management wanted to select the site that won the last comparison by having the largest number of factors of higher value. Which site did they select.
ADDITIVE-DIFFERENCE TASK --YING-YANG CORPORATION
Data Used for the Task:
Site 1 / Site 2 / Site 3 / Site 4 / Site 5 / Site 6Pop. Density / 22 / 15 / 16 / 11 / 22 / 12
Comp. Sit. / 15 / 26 / 15 / 30 / 24 / 29
Traffic Dens. / 36 / 27 / 30 / 36 / 23 / 18
Retail Sales / 32 / 28 / 16 / 18 / 26 / 24
Family Income / 14 / 25 / 14 / 28 / 22 / 16
Land & Bldg / 15 / 26 / 27 / 19 / 20 / 30
Pop. Growth / 19 / 30 / 28 / 32 / 24 / 16
Order: / 4th
Best / 2nd
Best / 6th
Best / Best
(1st) / 3rd
Best / 5th
Best
Rules:
Best Site: The Site that has the highest number of factors of higher value when compared to each other site in a pair-wise comparison.
2nd Best Site: The site that has the least number of factors of lower value than the best site; if more than one site qualifies, then a pair-wise comparison is performed to determine which site has a higher number of factors of higher values.
3rd Best Site: The site that has the second least number of factors of lower value than the best site; if more than one site qualifies, then a pair-wise comparison is performed to determine which site has a higher number of factors of higher values.
4th Best Site: The site that has the third least number of factors of lower value than the best site; if more than one site qualifies, then a pair-wise comparison is performed to determine which site has a higher number of factors of higher values.
5th Best Site: The site that has the fourth least number of factors of lower value than the best site; if more than one site qualifies, then a pair-wise comparison is performed to determine which site has a higher number of factors of higher values.
6th Best Site: The site that has the fifth least number of factors of lower value than the best site; if more than one site qualifies, then a pair-wise comparison is performed to determine which site has a higher number of factors of higher values.