Decision Matrix Essay Example | Topics and Well Written Essays - 750 words

Decision Matrix - Essay Example Being near to the market makes the new branch accessible to the customer and correspondingly, the high likelihood for it to profit. 2. Near to supplier – the business is a retailer and requires heavy coordination with the retailer. Proximity to supplier will save the business freight cost which is one of its highest overhead. Proximity to supplier also ensures predictability of supplies and shorter delivery period making the company more responsive to the demand of the market. It will also save the company from spoilage and breakage. 4. Convenience of setting up – convenience of setting up includes the availability of building materials, good infrastructure and absence of red tape in the area. These factors could bring unexpected cost to the business and therefore must be absent to make the construction of the new location convenient. The best option among the alternative locations is location 4. It has a total score of 2. It is the best location for the expansion of the new grocery for a variety of reasons. First is its proximity to the customers making the new branch very accessible and therefore ensures volume of grocery shoppers that could translate to sales. Second is its proximity to supplier where it is also the highest at 9. This means that the delivery time is faster at lower cost. In addition, shorter travel time also means less spoilage and breakage translating to less wastage to the company. Set up cost is also reasonable. It is also convenient to construct the business there as regulatory bodies are friendly and materials for construction are readily available. There is also an abundance of highly qualified personnel in the area making Location 4 an ideal place for the expansion of the