As the lead analyst on the Hoosier Burger project, you have been busy collecting, structuring, and evaluating the new system’s requirements. During a Monday morning meeting with Bob and Thelma, the three of you review the system requirements, system constraints, and alternative design strategies. The proposed alternative design strategies address low-end, midrange, and high end solutions. Additionally, weights are assigned to the evaluation criteria, and the alternatives are ranked according to the criteria.

Bob has stated repeatedly that his main priority is to implement an inventory control system. However, you are aware that, if at all possible, Bob would like to also implement a delivery system. You inform Bob that two of the alternative design strategies support a delivery system but will increase the system’s development cost by at least $20,000 and will add $10,000 in recurring costs to the new system. Bob feels that the addition of the new delivery system will result in $25,000 in yearly benefits over the life of the new system. The inclusion of a delivery system necessitates the addition of several new requirements and the modification of system constraints. Table 7-7 outlines these changes. The weights, ratings, and scores also require adjustments. Table 7-8 contains information about these adjustments.

a. Generally speaking, what alternative design strategies are available to Hoosier Burger?

b. Is an enterprise resource planning system a viable option for Hoosier Burger? Why or why not?

c. Modify Figure 7-19 to incorporate the criteria mandated by the new delivery system. Which alternative should be chosen?

d. Assuming that Alternative C is still chosen, update Hoosier Burger’s economic feasibility analysis to reflect the changes mentioned in this scenario.

Figure 7-19

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TABLE 7-7: Hoosier Burger Requirements and Constraints Criteria New Requirements Easy real-time entry of new shipment data Automatic reorder decisions Real-time data on inventory levels Facilitates forecasting Track delivery sales Customer billing Constraints Costs to develop Cost of hardware Time to operation Ease of training Alternative A Yes For some items Not available Not available Available Not available $45,000 $25,000 4 months 1 week of training Alternative B Yes For all items Available for some items only Available Available Not available $70,000 $50,000 7 months 3 weeks of training Alternative C Yes For all items Fully available Available Available Available $85,000 $50,000 10 months 3 weeks of training