During a negotiation with a vendor for a critical component, the vendor states they cannot meet the required delivery date due to supply chain issues. This component is on the critical path. The vendor offers a 10% discount if the deadline is extended by two weeks. What is the BEST course of action for the project manager?

Answer options:

Accept the discount and update the schedule baseline immediately.

Demand the vendor meet the original date or face penalties.

Analyze the impact of the two-week delay on the project schedule and cost baseline before responding.

Look for an alternative vendor who can meet the date.

How to approach this question

Always 'Analyze' or 'Assess' before acting. Never accept a change to the critical path without understanding the impact.

Full Answer

C.Analyze the impact of the two-week delay on the project schedule and cost baseline before responding.✓ Correct

Analyze the impact of the two-week delay on the project schedule and cost baseline before responding.

A delay on the critical path extends the project end date. The PM must calculate if the 10% discount covers the cost of project delay (e.g., penalties, lost revenue).

Common mistakes

Assuming the discount is worth it or immediately fighting the vendor without data.

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