Scenario 1

You are a project manager who has been assigned a new feasibility project. Initially, you have been asked to assess and then provide a recommendation on the following proposal.

Purchase 20 new fleet vehicles to be used by employees for a variety of purposes A committee has narrowed the choices down to the following vehicles:

The Smart Car (2 seater) - electric version

Ford F-150

Toyota Camry (4 seater)

Chevrolet Volt

Parameters:

Nearest manufacturing plant is 80 miles away from headquarters where the vehicles will be located

A distribution center is located two states away at 400 miles from headquarters

There are no mechanics at headquarters, so the cars would have to be serviced locally

The company’s procurement team has established a 20% discount for any General Motors vehicles

Gas is expected to remain under $3.00 per gallon for the life of the vehicles

The average number of trips taken by employees on company business is roughly 200 per year

A minimum of 25 miles per gallon is required to stay in sync with company environmental initiatives

Cars will be parked on company property, so no rental space will be required

The company has an excellent safety record and would like the vehicles to be as safe as possible

Scenario 1 - Answer the following questions in your paper:

What cost considerations will you consider for each vehicle? Specify at least 5 significant cost elements.

Are there any vehicles that should be discarded for consideration? If yes, why?

What are the expected benefits to the company by providing access to these vehicles for business trips?

Based on a total cost of ownership analysis, which vehicle would you recommend to the fleet manager and why?