Twenty Four Seven Convenience Store, which had opened its first store at New Delhi’s Lajpat Nagar in 2005, pres-ently operates 38 ‘round-the-clock’ stores in the India’s capital region1. Planning to open its new branch in the capital suburban, the chain has come up with three options which have been evalu-ated against the decision factors are follows: LocationFACTOR WEIGHT A B CMarket Size 30 8 6 5Accessibility 30 6 5 6Proximity to the current24-7’s distribution centres 25 5 6 4Store expansion potential 15 5 6 9   a) Using the factor-rating method, what is the recommended sitefor Twenty Four Seven’s new store?b) The store expansion potential is the least important factor inthe least. At what level of importance (weight) for the store’ expansion potential, the decision made in part (a) of this ques-tion will change.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter6: Optimization Models With Integer Variables
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Twenty Four Seven Convenience Store, which had

opened its first store at New Delhi’s Lajpat Nagar in 2005, pres-
ently operates 38 ‘round-the-clock’ stores in the India’s capital

region1. Planning to open its new branch in the capital suburban,

the chain has come up with three options which have been evalu-
ated against the decision factors are follows:

Location
FACTOR WEIGHT A B C
Market Size 30 8 6 5
Accessibility 30 6 5 6
Proximity to the current
24-7’s distribution centres

25 5 6 4
Store expansion potential 15 5 6 9

 

a) Using the factor-rating method, what is the recommended site
for Twenty Four Seven’s new store?
b) The store expansion potential is the least important factor in
the least. At what level of importance (weight) for the store’

expansion potential, the decision made in part (a) of this ques-
tion will change.

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