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Perform a sensitivity analysis to understand your results drivers, how robust my decision, and to provide a recommendation based on my sensitivity analysis? Goal -
Perform a sensitivity analysis to understand your results drivers, how robust my decision, and to provide a recommendation based on my sensitivity analysis?
Goal - Should X Enterprises change vendors to select the most suitable for office supplies or continue using one they have?
Criteria
- Quality - For companies, product quality earns customer loyalty, helps establish brand recognition, and manages costs which is why X enterprises need one. Quality provides a qualitative measurement of how durable or effective a supplier's product is. You might request samples to evaluate quantity before purchasing.
- Price - the cost of the new vendor (Z Supplies Corp.) (measured) in US dollars, including initial price and restocking cost over a five-year period. The lower the total cost, the better the alternative.
- Delivery Time - Will be measured with promise dates given to the customer and customer request dates. Customer Measurements (By entire orders, by line Item, and by number of units).
Alternatives
- Current System (X Supplies INC.) allows the company to set up a weekly delivery system that virtually guarantees steady sales. Produces reminders of when you are due for supplies. Is set up on an automatic delivery system to create a steady cash flow. While the vendor delivers all the current companies supplies, there is the possibility that new system may offer new and improved delivery.
- New System (Z Supplies Corp.) is a vendor for big corporations and #1 in then vendor industry today. Z Supplies CORP. allows the company to set up daily deliveries with an electronic delivery hardware. In addition, you can order in bulk which you bring the prices down on supplies, you always have free.
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