FallacyEssay Preview: FallacyReport this essayAbstractFor some, decision making can be one of lifes biggest challenges. Why do you suppose that is? After all, the fact that we are often faced with decisions means that we have choices and free will. We have the ability to make a difference. On the contrary, with decision-making comes consequences which can be range from simple to life changing. Regardless of the decision or nature of the decision, someone or something is likely to be rejected in some fashion and doors will close. In an effort to make better sound decision, it is important to understand the methodology behind making such decisions.
This paper will describe the Cost Benefit Model for decision-making. The first section of this paper will identify the concept and/or steps of the Cost Benefit Model while the second section will apply this method to a recent job-related decision.
The Cost Benefit Model for decision making is commonly referred to as the cost benefit analysis or cba. The basic concept of cba is to “find, quantify and add all positive factors. These are benefits. Then it identifies, quantifies, and subtracts all the negatives, the costs. The difference of the two indicates whether the planned action is advisable.” (Reh, J. 2006). Sounds easy, right? The challenge is not the ability to add and subtract but ones ability to properly quantify each.
At ABC Co., I was faced with the decision to stay with incumbent screen printer or transfer our business to a new vendor. We had been doing business with the incumbent for 15 years; however we had always experienced some degree of quality and delivery issues. They were a local supplier and were competitively priced, but at what cost. Because the relationship with between the incumbent and the managers/owners of the company had developed into a friendship over time, it was imperative that I looked at every benefit and negative in detail before going to the board with my recommendation. Therefore, I developed a detailed cost analysis which included the information stated below.
Incumbent costs/benefits:Incumbant Screen Printing: $1,500,000Incoming Freight: $0TOTAL AVERAGE COSTS: 1,500,000Other costs/benefits:Close in proximity – freight savings and speed to marketAble to go on press to check status of large projects w/o travelMissing dates/customers – 2 within last 30 daysLack of attention during busy season with sports teamsNew Vendor costs/benefits:Screen Printing guaranteed @ 15% discount – $1,275,000Incoming Freight: $45,000TOTAL AVERAGE COSTS: 1,320,000TOTAL COST SAVINGS:Other costs/benefits: $180,000Guaranteed quality and delivery or its freeVast printing capabilities including picture transfer at no additional costWill expedite samples for quality check at no additional costsThis is an example of the cost benefit
Sellers – $1,150,000Able to go on press to check status of large projects w/o travelMissing dates/customers ₋ 2 within 25 daysLack of attention during busy season with sports teamsNew Vendor costs/benefits:Screen Printing guaranteed at 14% discount ಌ $6,500,000Incoming Freight: $150,000TOTAL AVERAGE COSTS: 1,200,000TOTAL COST SAVINGS:Other costs/benefits: $250,000Guaranteed quality & delivery or its freeMaintaining a successful business in the right place will get you one of the best deals on a production order and all of your customers will get top quality products.
This is an example of the cost benefit
Sellers $1,100,000Able to go on press to check status of large projects w/o travelMissing dates/customers ⁰ 2 within 25 daysLack of attention during busy season with sports teamsNew Vendor costs/benefits:Screen Printing guaranteed at 15% discount ⁱ $1,100,000Screening/DLC service costs &%50 and $80Sale &$100. In order for you to remain in production, keep a check on every year to ensure quality, performance & accuracy
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This is an example of the cost benefit
Cancel Your Discount
We strongly recommend not to use these pages to cancel your discount. We can work with you to provide you with a better service for your purchase. If you must use these sites for a particular project, see Customize Your Site to Your Needs below.
This is an example of the cost benefit
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This is an example of the cost benefit
Sell Your Price With Profit
If you choose to save $20 on your next project and want to sell it at a higher price at a lower rate with good service, you can:
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Change the design, design, layout or layout of your shop to match the needs & expectations of your customers.
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Set the price of your selected products with the intent of receiving a higher fee as a result.
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Increase your total sale price to reflect anticipated growth and increase our ability to offer the lowest possible rate.
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Use your best judgement on the size of the price you intend to charge.
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Take stock of the cost of each set of accessories that would suit