Response Strategy for Vendor Delay: A Comparison of Costs and Timelines

Canceling Order and Hiring NBG Company: Response Strategy

Question

Mary is the project manager of the HGH Project for her company.

She and her project team have agreed that if the vendor is late by more than ten days they will cancel the order and hire the NBG Company to fulfill the order.

The NBG Company can guarantee orders within three days, but the costs of their products are significantly more expensive than the current vendor.

What type of a response strategy is this?

Answers

Explanations

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A. B. C. D.

C.

The response strategy described in the scenario is a Contingent response strategy.

Contingent response strategy is a risk response strategy that identifies an alternative course of action to be taken in case of an identified risk event. This alternative course of action is triggered only when the risk event occurs.

In this scenario, Mary and her project team have identified the risk of the vendor being late by more than ten days, which can negatively impact the project schedule. To mitigate this risk, they have identified an alternative course of action, which is to cancel the order and hire the NBG Company to fulfill the order.

The contingency plan to hire NBG Company is triggered only if the identified risk event occurs, which is the vendor being late by more than ten days. This contingency plan is aimed at ensuring that the project schedule is not delayed, and the project team can meet the project's objectives.

Therefore, the response strategy in this scenario is a Contingent response strategy. The other options, such as External risk response, Internal risk management strategy, and Expert judgment, are not appropriate in this context.