Information Technology Project Management
9th Edition
ISBN: 9780357241226
Author: Kathy Schwalbe
Publisher: Cengage Learning US
expand_more
expand_more
format_list_bulleted
Concept explainers
Expert Solution & Answer
Chapter 12, Problem 2DQ
Explanation of Solution
Make-or-Buy decision process and performing financial calculations in the Lease-or-Buy example:
- Make-or-Buy decision process is a strategic decision in the procurement function.
- In a Make-or-Buy decision process, the organization decides to carry out certain activities to deliver services or product, within the organization or hire a third party to do the same.
- It includes careful cost estimation for delivering a product and comparing them with the relevant cost after outsourcing this operation.
- Consider the example of Lease-or-Buy, if buying an equipment for a project of price $12,000, with a daily operational cost of $400, if incase we can even lease the same piece of equipment for $800 per d...
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Create a decision table for the below case:
An order will be accepted only if the product is in stock and the customer’s credit is OK. If both conditions are met, the order is accepted. Otherwise, the order is rejected. Then, the company decides that the credit manager can waive the customer’s credit requirement.
Write the business rules that are reflected in the ERD shown in Figure P2.15. (Note that the ERD reflects some simplifying assumptions. For example, each book is written by only one author. Also, remember that the ERD is always read from the “1” to the “M” side, regardless of the orientation of the ERD components.)
FIGURE P2.15 THE CROW’S FOOT ERD FOR PROBLEM 15
When a customer contacts the company to ask for an estimate, the proprietormakes a note of the customer’s contact details and an outline of the proposedwork. He agrees a date with the customer to view the property in order to givean estimate of the cost for the work. When visiting the property on the agreeddate the proprietor adds more detail to the outline of the proposed work. Within3 days of visiting the property the proprietor produces a fully detailed estimateand sends it to the customer. If the customer agrees the estimate, the proprietorschedules a date to start the job (this is based on the size of the job and otherjobs that have already been scheduled).A few days before the agreed start date of a job, the proprietor contacts thecustomer to confirm the start date, and then orders the required buildingmaterials from suppliers to be delivered on the date the job starts. At theend/completion of the job the proprietor calculates the actual cost of the job toproduce an invoice which…
Chapter 12 Solutions
Information Technology Project Management
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, computer-science and related others by exploring similar questions and additional content below.Similar questions
- Choose the correct answer in the picture below.arrow_forwardUse the information below and create a use case diagram.arrow_forwardSelect the characteristics of composition constraints: are used to enforce a quantity that depends on the decision variables are used when a quantity is compared with a fixed value can be an inequality or an equality must use absolute referencing to calculate correctly are used to enforce a proportional relationshiparrow_forward
- Use the information below and create a use case diagram. Name: Make Appointment Patient/Office Staff Describes the process used to make an appointment 1. Patient requests new appointment or change 2. Office staff offers available appointments 3. Patient chooses an appointment 4. Office staff adds appointment and cancels changed appointment if needed 1. Patient requests new appointment or change 1. Office staff offers available appointments 2. Patient chooses not to schedule or change appointment Actor: Description: Successful Completion: Alternative: Pre-Condition: Patient needs to schedule or change an appointment Post-Condition: Appointment is scheduled or changed. None Assumptions:arrow_forwardExplain the rules and style guidelines for creating entity relationship diagramarrow_forwardOne-to-many relationships are defined.arrow_forward
- Computer Science Rewrite this brief section. Create a table that illustrates the data. INTRODUCTION: The University of Wisconsin–Stout has experienced a series of large budget cuts in recent years. The athletic department has been granted an estimated budget of $250,000 for updates of current facilities. For a new floor installation to be feasible, the total cost must not reach over $250,000. FIGURES: According to Connors Flooring, the total installation cost of a maple sports floor is $81,300 with over 38 years of life expectancy. This is based on a 10,000-square-foot floor. The Maple Floor Manufacturers Association has concluded that wood floors also require regular cleaning, sanding, lines repainted, and floor refinishing approxi- mately every three years. This is a cost of approximately $8,000.00 per three years, equaling $2,666.00 p/year. With a 38 year life expectancy, the total for cleaning, sanding, painting, etc. = 101,308. CONCLUSION: The total cost of the floor is under…arrow_forwardQUESTION 1 The OMCA club operations When members join OMCA health club, they pay a fee for a certain length of time. Most memberships are for 1 year, but memberships for short periods are available. Due to various promotions throughout the year, it is common for members to pay different amounts for the same length of membership. The club wants to e-mail reminders to members to ask them to renew their memberships one month before their memberships expire. Some members have been angry with staff when asked to renew at a much higher rate than their original membership contract. So, the club needs staff to keep track of the price paid so that the managers can override the regular prices with special prices when members are asked to renew. The system must keep track of these new prices so that renewals can be processed accurately. One of the problems in the health club industry is the high turnover rate of members. Although some members remain active for many years, about half of the…arrow_forwarda yearly report which has annual average open price, close price, transaction volume and gain/loss from 1950 to 2018, and the most profitable year, "arrow_forward
- Contribution Format or Traditional Format should be utilized to identify relevant expenses when preparing income statements? Give a detailed description of your response. To back up your claim, provide an example that includes two revenue statements, one for absorption and one for variable costs.arrow_forwardAs of the time of writing, Damon Davis was completing out the paperwork for Drano Plumbing. He estimated a $50,000 net profit would be made. He counted the columns of the balance sheet and knew how much was in the credit column ($300,000) and how much was in the negative column ($400,000). What, in your opinion, was the most plausible reason for the discrepancy in the results? What should he do next to identify the issue's cause if this wasn't the cause of the issue?arrow_forwardProduct makes Company Which of the following statements is accurate with respect to the above diagram? O a. Each company makes at most one product O b. Each company makes at least one product. Oc Each product is made by exactly one company. O d. Each product is made by at most one company.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Information Technology Project ManagementComputer ScienceISBN:9781337101356Author:Kathy SchwalbePublisher:Cengage Learning
Np Ms Office 365/Excel 2016 I NtermedComputer ScienceISBN:9781337508841Author:CareyPublisher:Cengage
Database Systems: Design, Implementation, & Manag...Computer ScienceISBN:9781305627482Author:Carlos Coronel, Steven MorrisPublisher:Cengage Learning
Operations Research : Applications and AlgorithmsComputer ScienceISBN:9780534380588Author:Wayne L. WinstonPublisher:Brooks ColeCOMPREHENSIVE MICROSOFT OFFICE 365 EXCEComputer ScienceISBN:9780357392676Author:FREUND, StevenPublisher:CENGAGE L
A Guide to SQLComputer ScienceISBN:9781111527273Author:Philip J. PrattPublisher:Course Technology Ptr
Information Technology Project Management
Computer Science
ISBN:9781337101356
Author:Kathy Schwalbe
Publisher:Cengage Learning
Np Ms Office 365/Excel 2016 I Ntermed
Computer Science
ISBN:9781337508841
Author:Carey
Publisher:Cengage
Database Systems: Design, Implementation, & Manag...
Computer Science
ISBN:9781305627482
Author:Carlos Coronel, Steven Morris
Publisher:Cengage Learning
Operations Research : Applications and Algorithms
Computer Science
ISBN:9780534380588
Author:Wayne L. Winston
Publisher:Brooks Cole
COMPREHENSIVE MICROSOFT OFFICE 365 EXCE
Computer Science
ISBN:9780357392676
Author:FREUND, Steven
Publisher:CENGAGE L
A Guide to SQL
Computer Science
ISBN:9781111527273
Author:Philip J. Pratt
Publisher:Course Technology Ptr