Calculate the amounts foregone by not adopting

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Reference no: EM133433802

Question: 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 Medium Long
Delphi Inc. $4.00 $4.80 $8.40
CRM International $5.00 $5.75 $7.15
Murray Analytics $4.25 $5.90 $6.30

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.

Decision Alternative Maximum Minimum
Delphi Inc. $ $
CRM International $ $
Murray Analytics $ $
What is the maximum and minimum of each?

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.

What is the short, medium, long and maximum of each below?

Opportunity Loss Matrix Future events
Decision Alternative Short Medium Long Maximum
Delphi Inc. $ $ $ $
CRM International $ $ $ $
Murray Analytics $ $ $ $

Reference no: EM133433802

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