Vendor Selection

You are a project manager for a current project that you are managing for a small firm. You have received three possible solutions from three different vendors. This project has two constraints$$cost and schedule. Management has determined that a cost of $$15,000$ or less would be good but up to $$20,000$ is acceptable. Management also has determined that a completion time of $180$ days or less would be good but up to $240$ days would be acceptable. The business user team has determined that there are five business requirements that they would like to see with the final product.

The firm utilizes a numbering system between $1$ and $5$ to determine if the vendor$$s proposal satisfies the constraints and requirements. For constraints, the firm usually rates proposals that meet the good criteria with the number $5,$ proposals that meet acceptable with the number $3,$ and those that do not meet the criteria limits would be rated with the number of $1.$ Regarding requirements, if the proposal fully satisfies the requirement, then it would be rated with the number $5.$ If the proposal satisfies at least $60\%$ of the requirement, then it would be rated with the number $3.$ All other proposals that do not satisfy at least $60\%$ of the requirement would be rated with the number $1.$

Furthermore, the importance of the constraints and requirements based on a $100\%$ scale are as follows.

Cost Constraint is $20\%.$

Schedule Constraint is $10\%.$

Requirement $1$ is $20\%.$

Requirements $2$ and $3$ are $15\%$ each.

Requirements $4$ and $5$ are $10\%$ each.

Your job as a project manager is to review the proposals below and determine which vendor$$s proposals will be awarded the contract for the project based on a weighted average approach.

Project Proposals

Vendor A

Vendor B

Vendor C

Constraint Cost

$$20,750\mathrm{.}00$

$$19,500\mathrm{.}00$

$$14,950\mathrm{.}00$

Schedule

$160$ days

$200$ days

$250$ days

Requirement $1$

Fully Meets

Fully Meets

$75\%$ Meets

Requirement $2$

$75\%$ Meets

$50\%$ Meets

Fully Meets

Requirement $3$

Fully Meets

Fully Meets

Fully Meets

Requirement $4$

Fully Meets

Fully Meets

$50\%$ Meets

Requirement $5$

$75\%$ Meets

$75\%$ Meets

$75\%$ Meets

Instructions

For this assignment, please complete the following.

Create a weighted average selection table in Excel in order to select the best proposal based upon this weighted average approach. Highlight the column with the best proposal in yellow.

Paste a screenshot of the Excel table of the weighted average approach in a Word document and write a paragraph $($four to seven sentences$)$ in the same Word document as to why this vendor would be the best choice.