Problem #3 (30 marks)

You have 3 vendor options to choose from for leasing your heavy equipment for a 4-year project.

Vendor #1: Relatively new player (only 2 years in business) and not a lot of financial information is available. They can meet your requirements and schedule. Cost is about 6% lower than the highest vendor which will translate to a $500,000 savings over the life of the project. There is hardly any information on their equipment support services (very few customers have used them). Equipment is the newest out of all 3 vendors

Vendor #2: Well established vendor (long term financials available). They can meet your equipment requirements but not your schedule (delay of 3 weeks to start your project). Cost is the highest of all three. Equipment support is satisfactory but not stellar (as you have researched their customer reviews and found some unhappy customers). Equipment is at least 4 years old

Vendor #3: Well established vendor (5 years financials available). They can only meet 80% of your equipment requirements on your schedule. Cost is 1% lower than Vendor #2. They provide solid equipment support 24/7 (5-star ratings). All their equipment is about 2 years old Management has indicated to you that the company uses the following scoring weight when considering different investment options:

Company financials: 0.3

Equipment availability: 0.15

Age of equipment: 0.15

Meet schedule: 0.1

Equipment mechanical support: 0.2

Cost: 0.1

Total: 100%

Assign a scoring method from 1 to 5 (least to most desirable) for all vendors under all categories and weight all 3 options to find the most ideal company you should lease the equipment from.