Reference no: EM132900368
Skill Building Exercise #7 Alternative Design Strategy Weighted Decision Matrix
From the following description, correctly build a Weighted Alternative Decision Matrix. Be sure your answer has both the numbers and the calculated results.
Panamerican Steel Co. (PSC) was analyzing their information needs for a new online system to interface with their suppliers. The proposed system had three key requirements. First, it had to provide a seamless Web interface that allowed both parties to access the same data. Second, the system had to incorporate a database that contained all the product information needed to run its business. Third, the system needs to interface with the PSC inventory management system so that all vendor shipments are recorded real time in the inventory system.
Building such a system can be expensive. PSC has budgeted only $100,000 for software development costs. They also need to have the system up and running within 8 months in order to be in time for the next contract cycle.
Three alternatives have been proposed: low-end (A), medium (B), and high-end (C). Each alternative is feasible, but the difference lies in how they address the constraints and requirements of the system. Alternative A provides the seamless Web interface, but only provides a medium-sized database that provides minimal functionality. It does not interface with the inventory management system. Alternative B has both the Web interface and a full-size database, but while it interfaces with the inventory management system, the interface provides periodic batch updates instead of real time updates. Alternative C provides all the functionality the users have requested. On the cost side, A can be done for $50,000, B for $100,000, and C costs $150,000. Alternative C can be installed within 10 months, while B can be installed in 8 months and A in 6 months.
PSC feels that constraints are equally as important as functionality for evaluating the system. Development costs are just as important as schedule issues. The seamless interface and the database are equally important, and each is twice as important as the inventory management system.