A Company Wants to Buy a Moulding Machine That Can

question 172

Essay

A Company wants to buy a moulding machine that can be integrated into its computerized manufacturing process.It has received three bids for the machine and related manufacturer's specifications.The bids range from $3,500,000 to $3,550,000.The estimated annual savings of the machines range from $260,000 to $270,000.The payback periods are almost identical and the net present values are all within $8,000 of each other.The president just doesn't know what to do about which vendor to choose; all the selection criteria are so close together.Required:
What suggestions do you have for the president?

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Definitions:

Specific Purpose

A particular goal or intention that guides an action or activity, often articulated to focus efforts and resources.

Emergent Interest Groups

Groups that form spontaneously around shared concerns or goals, typically in response to specific events or developments.

Operating Coalition

A temporary alliance formed for the purpose of achieving a particular goal or undertaking a specific task.

High Agreement

A situation or condition where there is significant consensus or concurrence among parties on a particular issue or set of issues.