QUESTION $5$

$[10$ MARKS$]$

The scoring models used by two logistics project managers, Tenda and Macey, selecting suitable logistics projects,

vary from being very basic to very complex. Consider the five scenarios $(5\mathrm{.}1-5\mathrm{.}5)$ regarding project selection models

and answer in each case the following two questions $($a & b$).$

a$.$ Identify the relevant scoring model suitable for project selection.

b$.$ Classify the identified model as a numeric or non$-$numeric model.

Scenarios:

$5\mathrm{.}1$ Tenda and Macey can use this method as it focuses on the value of the interest rate when selecting a project

and determines the interest rate required to make the present value of the cash flows in the project equal to zero.

$5\mathrm{.}2$ Tenda and Macey can use this method when a project is perceived to be holy in the sense that it has the personal

support of part or all of top management and will be maintained until successfully concluded.

$5\mathrm{.}3$ Tenda and Macey can use this method if the project is required in order to keep the system operating, as long

as the cost of the project is worth saving the system.

$5\mathrm{.}4$ Tenda and Macey can use this method when benefits of projects considered need to be evaluated. It is therefore

used when more than one project seems attractive to perform but decisions must be made to select the one or

two that would most benefit the organisation.

$5\mathrm{.}5$ Tenda and Macey can use this method for judging a new project to develop and distribute new products on the

degree to which it fits the organisation's existing product line, fills a gap, strengthens a weak line, or extends the

line in a new desirable direction.

Clearly structure your answer using the following table template to answer the question.