Conduct a decision analysis to evaluate the choice of a vendor. The aggressive strategy (maximax) is to choose the The conservative strategy (maximin) is to choose the The opportunity loss strategy is to choose th
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
A company is considering three vendors for purchasing a CRM system: Delphi Inc., CRM International, and Murray Analytics. The costs of the system are expected to depend on the length of time required to implement the system, which depends on such factors as the amount of customization required, integration with legacy systems, resistance to change, and so on. Each vendor has different expertise in handling these things, which affect the cost. The costs (in millions of $) are shown below for short, medium, and long implementation durations. Use the Excel template Decision Analysis to identify what vendor to select.
| Decision Alternative | Short | Medium | Long |
| Delphi Inc. | $3.50 | $5.00 | $7.20 |
| CRM International | $4.25 | $4.95 | $6.55 |
| Murray Analytics | $4.00 | $4.70 | $6.90 |
Fill in the table below for maximum and minimum costs under each alternative. Carry out an analysis considering costs as negative numbers. Round your answers to the nearest cent.
| Decision Alternative | Maximum | Minimum |
| Delphi Inc. | $ | $ |
| CRM International | $ | $ |
| Murray Analytics | $ | $ |
Calculate the amounts foregone by not adopting the optimal course of action for each possible implementation duration. Determine the maximum opportunity cost for each alternative. Fill in the table below. If your answer is zero, enter "0". Round your answers to the nearest cent.
| Opportunity Loss Matrix | Future events | |||
| Decision Alternative | Short | Medium | Long | Maximum |
| Delphi Inc. | $ | $ | $ | $ |
| CRM International | $ | $ | $ | $ |
| Murray Analytics | $ | $ | $ | $ |
Conduct a decision analysis to evaluate the choice of a vendor.
The aggressive strategy (maximax) is to choose the
The conservative strategy (maximin) is to choose the
The opportunity loss strategy is to choose the
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