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					                          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 6

Pop. 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          2nd          6th          Best          3rd          5th
                          Best         Best         Best         (1st)         Best         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.

				
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posted:12/10/2011
language:English
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