Part I: Cost Benefit Analysis:

As the Director of HIM, you have been charged with finding a new vendor to supply the copy machines in your division to be considered in the next capital budget submission. To start the process, you want to form a small committee to assist you in the decision making process.

1. Who should you reach out to for joining the committee? Both within the HIM department and outside your department.

Once the committee is formed, the team determines the most important factors for the machine and assigns those factors a weight on a scale from 1-5 (5 being the most important). As you can see in the table below, Copy Quality was the highest weighted factor with a weight of 5. The four vendors are brought in to display their machines, functionality and services and the committee then rates each vendor based on the factors important to the organization.

After reviewing the below table, answer the following questions:

2. From which vendor should you acquire your machines?

3. What factors did you consider in your decision?

4. What lead you to the final selection of one specific vendor?

Provide a short rationale with specific details to the above questions.

Vendor A Vendor B Vendor C Vendor D

WGT| RTG| SCORE RTG| SCORE RTG| SCORE RTG| SCORE

COPY QUALITY 5| 4| 3 3 2

SPEED 4| 3 1 4 2

MAINTENANCE/ 2| 3 3 5 2

HISTORY

SERVICEABLITIY 3| 5 2 4 3

UPGRADABLE 1| 4 3 3 5

SIZE 2| 5 3 3 1

TOTAL

PURCHASE/LEASE COST (RTG) $18,000 (RTG) $10,000 (RTG) $11,000 (RTG) $2500 Lease/year X 5yrs (operating lease)

The WGT (weight) scale is what you have determined to be the most important factors in selecting a copier. The RTG (rating) is the rating you gave each vendors copier for each category.