Case Study On Decision Analysis # 3 Mba 6203 Decision Modeling Research Paper

996 words - 4 pages

Case Study 3 Assignment
Background
Bids were taken from three companies (Brady Company, Deer Park, Rotterdam) to supply and deliver one rig to the Middle East. Each company has different lead times and costs. The best option is to be chosen considering total costs. It is assumed that all bidders will be able to deliver in the time frame indicated. Pulled straight from the case the bids are as follows:
Brady Company bids:
· $18 million, design identical to the prototype, and can have it delivered in 23 months. They decline to bid on breaking up the 75-ton base. Logistics for delivery will be substantially identical to the prototype and is included in the bid price.
Deer Park bids:
· $17.5 million, delivery in 24 months, and agrees to break the 75-ton piece apart which is included in the price. The cost of the transportation and per diem for the welders is included in the price.
Rotterdam bids:
· $17 million, delivery in 25 months if it leaves the large piece intact.
· $16.5 million, delivery in 26 months if it must break the 75-ton piece apart and send welders to the Middle East. The cost of the transportation and per diem for the welders is included in the price.
Analysis
Chart 1 details the cost calculations for the bids on hand. The lead times range from 700 to 791 days. Chart 1 was used to determine the price of the rig and the holding cost during the lead time.
Bidders
Brady Company
Deer Park
Rotterdam
RFQ Options
1
2
3
4
Delivery Type
1 Unit - 75 tons
2 Units - 75 tons
1 Unit - 75 tons
2 Units - 75 tons
Bids - USD
18,000,000.00
17,500,000.00
17,000,000.00
16,500,000.00
Lead Time -Months
23
24
25
26
Lead Time-Days
700.000
730.000
761.000
791.000
Holding Costs Percentage
25%
25%
25%
25%
Holding Costs - USD
$8,640,000.00
$8,750,000.00
$8,840,000.00
$8,951,250.00
Total Costs - Millions USD
$26,640,000.00
$26,250,000.00
$25,840,000.00
$25,451,250.00
CHART 1
Bid and Holding Period Costs
Per chart one, the obvious choice is to go with the Rotterdam 2 Unit bid with a lead time of 791 days. With a cost of $25,451,250, it is certainly the cheapest bid. What is not calculated is the effect of a quicker delivery. Chart 2 factors in the lead times and operating profit.
700
730
761
791
Brady Company
26,640,000.00
26,040,000.00
25,420,000.00
24,820,000.00
Deer Park
26,250,000.00
25,630,000.00
25,030,000.00
Rotterdam (1 Unit)
25,840,000.00
25,240,000.00
Rotterdam (2 Units)
25,451,250.00
CHART 2
Operating Profits Vs. Lead Times
When taking into consideration the operating profit of $20,000 per day, shorter lead times become more imperative. For example, the 700-day vs 791-day lead time includes 91 days profit of $1,820,000. In fact, the operating profit makes the shorter lead time’s total cost cheaper across the board. Chart 2 shows that the faster the asset is put into service, the cheaper its overall costs are compared to the other options.
Additional Factors Considered
Using the cost analysis, the Brady Company has been chosen as the winning...

Other Essays On Case Study on Decision Analysis # 3 - MBA 6203 Decision Modeling - Research Paper

A Report On Case Study Analysis

2151 words - 9 pages This case study report is requested by Dr xxx, the lecture of managing communications technology in xxx University . The case study comes from course study guide of managing communications technology (2008). This report is due on 05th of May, 2008.1.2Company backgroundTwo companies, Gretham Young (GY) and Jameson Business Systems (JBS) formalized their relationship and became a new company which is named Gretham Jameson Consulting (GJC). The new

Research and Decision making for Business - JCU - Literature review

1992 words - 8 pages first decade of the Twenty-first Century. In concert, these events may cause severe economic, cultural, and dietary distress for many communities around the world.”(Brown, R. M. 2013a). Tourist may willing to purchase on local products but they could not afford because of the impact from global financial crisis. For the location factor, some research study have shows about barrier of using languages in some areas. Language barriers also restricted

The Decision to Drop the Atom Bomb on Hiroshima

537 words - 3 pages Truman's decision to drop the atomic bomb on Japan was absolutely the right decision. Not only did it stop Japan from becoming a threat to world peace, but it saved American lives. If he hadn't dropped the bomb, the war could have and would have dragged on for four or five more years. Had Truman decided not to drop the bomb, Japan would have become a major threat to world peace. It would have become a bigger threat than it already

A Case Study Analysis

1524 words - 7 pages ZAP!!, A Case Study AnalysisZAP!! needs to be zapped. ZAP!! has a problem that will not go away. ZAP!! management has implemented a new manufacturing quality control system and would like full employee participation. However, not all employees (assemblers) participate in the weekly quality control meetings and those who do are reluctant to address the issues or express their views. ZAP!! management does not want to terminate any of the

GSK Case Study - Leading COmplex Organisations - MBA - Assignment

2701 words - 11 pages BHK430 - Leading Strategically Complex Organisations Candidate Number: 934658 Portfolio of Implementing Strategic Change in Complex Organisations Tasks Assignment 1. Individual summary report, based on a defined case analysis Word Count: 1559 Assignment 2. Individual analyses on own capabilities of leading strategically in complex organisations Word Count: 978 Assignment 1 GSK was formed from the merger of GlaxoWellcome and SmithKlineBeecham in

Control Systems in Petroleum Industry - University - Case Study/ Research Paper

3019 words - 13 pages The information on this coversheet will be included in Turnitin’s similarity analysis; however, your lecturers are aware of this and will disregard it. Assignment Cover Sheet • The information on this coversheet will be included in Turnitin’s similarity analysis; however, your lecturers are aware of this and will disregard it. Student Details Student Number 1 0 4 5 3 3 2 6 Family Name Malik Given Name Wasif Shakeel Unit Details Unit Code ENS5253

Microsoft Antitrust Case Analysis Study

1571 words - 7 pages Microsoft Antitrust Case Study AnalysisThe Microsoft Corporation is a worldwide company providing a variety of different software products and services. Microsoft maintains internet sites as well as develops computer hardware and programs. Microsoft is the largest supplier of computer software in the world (Reinhardt, 2006). They are known for products like Windows XP, Microsoft Office and Microsoft Visual Studio.NET. The Microsoft Corporation

Decision-Making And The Impact Of Work-Related Stress On Organizational Behavior

763 words - 4 pages activity. Thus, we are all decision-makers. However, "good" decision-making starts with a consecutive, purposeful, strategic-thinking process. Decision-making can be applied to many of the problems we encounter on a day-to-day basis. However, we must ensure we are solving the main problem and not the symptoms or peripheral problems. That's why identifying the problem is one of the most important steps in the decision making process. Without

Walmart Case Study competitive advantage - Strategic Management - Case study paper

4201 words - 17 pages ://globalmarketingtoday.wordpress.com/the-real-world/case-study-1/ 4. Configural Advantage in Global Markets – pages.stern.nyu.edu/~sdouglas/rpubs/config.html 5. http://www.nytimes.com/2006/08/02/business/worldbusiness/02walmart.html?pagewanted=a ll 張貼者: Eric Sun 於 上午12:21 以電子郵件傳送這篇文章BlogThis!分享至 Twitter分享至 Facebook分享到 Pinterest 標籤: TMA03 沒有留言: 張貼留言 較新的文章較舊的文章首頁 訂閱: 張貼留言 (Atom) 關於我自己 Eric Sun 檢視我的完整簡介 網誌存檔 · ▼ 2015 (7) · ▼ 三月 (5) · 旅遊貼士:到達高原後應注意事項 · Walmart's Strategic Analysis · Walmart Retailer business in India · WALMART SUCCESS IN MEXICO, CANADA AND CHINA: GLOBA... · TMA03 Walmart around the world · ► 二月 (1) · ► 一月 (1) 簡單主題. 技術提供:Blogger.

Case Study on Target Incorporation - Mgt - Case study target

499 words - 2 pages Zavian Hayes 200067397 What is the case study about? The contextual investigation begins off with an inquiry: "In the event that we needed to make sense of if a client is pregnant, regardless of whether she didn't need us to know, would you be able to do that?" They have individuals who go into the psyches of clients by their purchasing propensities. I as of late experienced something like this when I was taking a gander at autos. Taking a

case study on project management - msu - case study

789 words - 4 pages Marketing in BOP Markets 4 Strategies of marketing to low-income people Case Study Sai Prathyusha Gadaeraju Central Michigan University – MKT560 9/30/18 Introduction There are more than two-thirds of the population that earn less than USD 2000 per annum but have more than $5 trillion worth purchasing power (World Bank Report, 2008). This gives great chance for the companies to earn more profits. These propositions are both economically and

Similar Papers

Maternal Mortality Rates In The United States Case Study Public Health Policy And Decision Case Study

1010 words - 5 pages Maternal Mortality Rates in the United States Case Study Public Health Policy / Decision Making Natalie Sepulveda Problem Statement How can the United States improve the maternal mortality rate (MMR) from one of the highest compared to other industrialized countries? Background According to the CIA, in 2015, the MMR of the United States ranks 138 out of 184 countries with 14 deaths per 100,000 live births compared to Greece (184), Iceland (183

Analysis Of Decision Making Model

824 words - 4 pages identifying and choosing alternatives based on the values and preferences of the decision maker (Harris, 1998). Making a decision implies that there are alternative choices to be considered, and in such a case we want not only to identify as many of these alternatives as possible but to choose the one that best fits with our goals, desires, lifestyle, values, and so on. To do this I will utilize Rick Robert's 7 Step Decision Making Model and apply it to

Critical Thinking And Decision Making. Let It Pour: A Critical Thinking Case Study

1375 words - 6 pages action items (McCall, 1990). All the problems that were addressed require immediate attention and decisive response; however, a system of setting priorities will alleviate the daunting task of tackling all of the problems at once. The third step in making a good decision is to take action. By taking action, the hospital is attempting to put an end to the problems that are facing the organization. The final step is to conduct a follow-up analysis to

The Fashion Channel Case Study Analysis And Recommendation Mba Case Study

619 words - 3 pages age between 35 and 54 years old. However, their current ideal target group is the women between age 18 and 34 years old. If they implement the dual targeting strategy, the female with age between 18 and 34 years old will be targeted. In addition, the Analysis of Attitudinal Clusters (Stahl, 2007) shows that the fashionistas are those people who are highly interested in fashion, and the planners/shoppers have the biggest size of cluster. Focusing on