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THE PROBLEM Last week James held a meeting with his team, but no progress was made because there were a lot of arguments about which system should be selected. All seemed to have reasonable needs. But satisfying everyone's needs at the same time? That would be a mission impossible. Besides, James knows he needs to avoid suboptimi- zations, and do whatever is best for the company as a whole. The serious question now is "how" he would optimize those individuals' needs for the company's greater good. And the "what-system-he-should-select" question is secondary. The team started fighting and ended up without a conclusion. Unfortunately, James has until the end of today to make a decision. Time is running out, and he still does not know which system should be chosen. The system has to be up and run- ning within the next 60 days. Moreover, the system is expected to have around a five-year lifespan. At the moment, four suppliers have provided quotes and additional informa- tion regarding their fire extinguishing systems (see Tables 14.1 through 14.4). These suppliers are Fire Extinguisher, Early Birds, Lid.: Xtra Care, Ltd.; and Zebra Limited. They offer systems that have different functionalities, prices, maintenance costs, etc. The technologies used in these systems are also different (e.g.. chemical-based, form-based, water-based), but they are all applicable to use in the new building. Table 14.1 Fire Extinguisher Model Type/Technology Functionality Law Installation Unit Price Spraying Area Delivery Lead Time Maintenance Ease of Use Relationship w/ Vendor ABCI Chemical bused with the latest technology Meets standard & complies with law No hassle. There is no cost for installation . 585 per set Up to 100 square meters 15 days upon placement of onder $3 per set per year 3 Easy Never done business with before Program Initiating Process Table 14.2 Early Birds, Ltd. Model DEF-1 Type Technology Chemical-based Functionality Law Meets standard & complies with law Installation Na hussle. There is no cost for installation Unit Price S170 per set Spraying Area Up to 250 square meters Delivery Lead Time 30 days upon placement of order Maintenance $550 after the first year, plus 10% increment for the following years Ease of Use Easy to some extent Relationship w/ Vendor Have prior business relationship, nepotiations may be possible Table 14.3 Xtra Care, Ltd Model GHII Type Technology Foam technology Functionality Law Meets standard & complies with law Installation Cost of installation is around Sper set Unit Price S115 per set Spraying Area Up to 200 square meters Delivery Lead Time 50 days upon placement of order Maintenance 53 per unit per year Ease of Use Somewhat difficult Relationship w/ Vendor Never have business with before, but major stakeholder of Xtra Care. Lod. is a close relative of Mega Security Table 14.4 Zebra Limited Model JKL-1 Type Technology Water-based Functionality Law No information available, but most likely will not meet standard Installation No hassle. There is no cost of installation Unit Price $2,430 per set $ Spraying Area Up to 5,000 square meters Delivery Lead Time 55 days upon placement of order Maintenance No maintenance is required Ease of Use Easy Relationship w/ Vendor Never done business with before 276 CASE STUDIES When James looks at the quotes and provided information from the vendors, he has another problem. Some information is missing, and further information cannot be obtained at this time as the end of the day is approaching. "This is probably one of the worst days in my life," James said to himself Discussion items 1. How would you recommend James approach this problem? 2. What system would you recommend James choose? Support your recommen- dation, and state your assumptions