Procurement Management Question 9

[admin]

A customer has requested a change that requires you to obtain new equipment. You need to decide whether to lease or buy the equipment. The daily lease cost is US$150. The cost of purchasing the item is US$2000 and the investment cost is $50 per day. You’ll need to use the item for about 12 days. What should you do?

a) Lease it
b) Buy it
c) Ask the customer for US$2000 change order
d) Lease it for only 7 days to try to save the cost

[admin]

The correct answer is A.
Lease Cost : US$150 × 12 = US$1800
Buy cost : US$2000 + US$50 × 12 = US$2600

Therefore, it is cheaper to lease.’

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[Sankalp]

i ALSO THINK THAT ASKING FOR A CHANGE ORDER CAN ALSO BE AN OPTION AS THERE IS A NEW EQUIPMENT, IT SHOULD BE OUT OF SCOPE UNTIL NOW, THE COST FOR RENTING THIS FOR 12 DAYS IS $1800, IT MAKES SENSE TO GET A CHANGE ORDER AS WELL.

aPPARENTLY, IN THE REAL WORLD THIS SHOULD HAPPEN

[Author]

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