Homework Help is Here – Start Your Trial Now!
Business
Operations Management
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 Delphi Inc. $3.50 $5.50 CRM International Murray Analytics $3.00 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. Minimum Decision Alternative Delphi Inc. CRM International Murray Analytics $ $ S $ Maximum Opportunity Loss Matrix Decision Alternative 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 -Select- The conservative strategy (maximin) is to choose the -Select- The opportunity loss strategy is to choose the -Select- $ 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. Short Future events Medium $ $ $ $ Long # $ $ S # Medium $4.80 $4.25 $5.80 Maximum Long $6.55 $6.80 $7.50

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 Delphi Inc. $3.50 $5.50 CRM International Murray Analytics $3.00 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. Minimum Decision Alternative Delphi Inc. CRM International Murray Analytics $ $ S $ Maximum Opportunity Loss Matrix Decision Alternative 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 -Select- The conservative strategy (maximin) is to choose the -Select- The opportunity loss strategy is to choose the -Select- $ 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. Short Future events Medium $ $ $ $ Long # $ $ S # Medium $4.80 $4.25 $5.80 Maximum Long $6.55 $6.80 $7.50

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
See similar textbooks
icon
Related questions
Question
**CRM System Vendor Selection Analysis** A company is evaluating three vendors for purchasing a Customer Relationship Management (CRM) system: Delphi Inc., CRM International, and Murray Analytics. The cost of the system varies based on the time required to implement it, which depends on factors such as customization, integration with existing systems, and resistance to change. Each vendor has different expertise, impacting costs for short, medium, and long implementations. ### Cost Analysis (in millions of $): - **Decision Alternatives:** - **Delphi Inc.:** - Short: $3.50 - Medium: $4.80 - Long: $6.55 - **CRM International:** - Short: $5.50 - Medium: $4.25 - Long: $6.80 - **Murray Analytics:** - Short: $3.00 - Medium: $5.80 - Long: $7.50 ### Task Steps: 1. **Fill in Maximum and Minimum Costs:** - For each vendor, determine and input the maximum and minimum costs for implementations. - Consider all costs as negative numbers and round to the nearest cent. 2. **Opportunity Loss Analysis:** - Calculate the opportunity cost incurred by not choosing the optimal vendor for each implementation period. - Complete the Opportunity Loss Matrix for short, medium, and long-term scenarios. If the opportunity loss is zero, input "0". 3. **Decision Criteria Evaluation:** - **Maximax (Aggressive Strategy):** Choose the decision alternative with the maximum possible gain. The dropdown menu allows selection of the preferred vendor. - **Maximin (Conservative Strategy):** Choose the decision alternative with the least worst loss. Use the dropdown to select the vendor. - **Opportunity Loss Strategy:** Select the vendor with the lowest opportunity cost. This structured approach aids in identifying the most cost-effective vendor by evaluating potential costs and opportunity losses, assisting businesses in making informed decisions about CRM system procurement.
Transcribed Image Text:**CRM System Vendor Selection Analysis** A company is evaluating three vendors for purchasing a Customer Relationship Management (CRM) system: Delphi Inc., CRM International, and Murray Analytics. The cost of the system varies based on the time required to implement it, which depends on factors such as customization, integration with existing systems, and resistance to change. Each vendor has different expertise, impacting costs for short, medium, and long implementations. ### Cost Analysis (in millions of $): - **Decision Alternatives:** - **Delphi Inc.:** - Short: $3.50 - Medium: $4.80 - Long: $6.55 - **CRM International:** - Short: $5.50 - Medium: $4.25 - Long: $6.80 - **Murray Analytics:** - Short: $3.00 - Medium: $5.80 - Long: $7.50 ### Task Steps: 1. **Fill in Maximum and Minimum Costs:** - For each vendor, determine and input the maximum and minimum costs for implementations. - Consider all costs as negative numbers and round to the nearest cent. 2. **Opportunity Loss Analysis:** - Calculate the opportunity cost incurred by not choosing the optimal vendor for each implementation period. - Complete the Opportunity Loss Matrix for short, medium, and long-term scenarios. If the opportunity loss is zero, input "0". 3. **Decision Criteria Evaluation:** - **Maximax (Aggressive Strategy):** Choose the decision alternative with the maximum possible gain. The dropdown menu allows selection of the preferred vendor. - **Maximin (Conservative Strategy):** Choose the decision alternative with the least worst loss. Use the dropdown to select the vendor. - **Opportunity Loss Strategy:** Select the vendor with the lowest opportunity cost. This structured approach aids in identifying the most cost-effective vendor by evaluating potential costs and opportunity losses, assisting businesses in making informed decisions about CRM system procurement.
Expert Solution
Step 1: Decision analysis

Decision analysis is the approach to selecting the best alternative based on the available information. Based on the willingness to take risks, the decision is made. 

Here, the data given is as follows. 

Decision alternative Short  Medium Long
Delphi Inc  $       3.50  $       4.80  $       6.55
CRM International  $       5.50  $       4.25  $       6.80
Murray Analytics  $       3.00  $       5.80  $       7.50
steps

Step by step

Solved in 5 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS