a. Draw the project network diagram. b. What completion date would you recommend?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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1. Your company has just received an order from a good customer for a specially designed
electric motor. The contract states that, starting on the 13th day from now, your firm will
experience a penalty of $100 per day until the job is completed. Indirect project costs
amount to $200 per day. The data on direct costs and activity precedence relationships
are given in Table below.
Table 1: ELECTRIC MOTOR PROJECT DATA
Normal Time
Immediate
Activity
(days)
Normal Cost ($)
Crash Time (days) Crash Cost ($) Predecessor(s)
A
4
1,000
3
1,300
None
7
1,400
4
2,000
None
C
2,000
4
2,700
None
6.
1,200
1,400
A
E
3
900
2
1,100
B
F
11
2,500
3,750
C
4
800
3
1,450
D, E
3
300
1
500
F, G
a. Draw the project network diagram.
b. What completion date would you recommend?
Transcribed Image Text:1. Your company has just received an order from a good customer for a specially designed electric motor. The contract states that, starting on the 13th day from now, your firm will experience a penalty of $100 per day until the job is completed. Indirect project costs amount to $200 per day. The data on direct costs and activity precedence relationships are given in Table below. Table 1: ELECTRIC MOTOR PROJECT DATA Normal Time Immediate Activity (days) Normal Cost ($) Crash Time (days) Crash Cost ($) Predecessor(s) A 4 1,000 3 1,300 None 7 1,400 4 2,000 None C 2,000 4 2,700 None 6. 1,200 1,400 A E 3 900 2 1,100 B F 11 2,500 3,750 C 4 800 3 1,450 D, E 3 300 1 500 F, G a. Draw the project network diagram. b. What completion date would you recommend?
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