Draw the CPM network and identify the critical path. How many weeks will the projec require under normal operations? What is the total project cost with penalty included? ( How could the project time be reduced to 12 weeks and what is the total project cost

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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7.14 The project detailed in the table below is contracted for delivery in 11 weeks, with a penalty
clause requiring the contractor to pay a penalty of $5000 for each week late. The project
must therefore be expedited. The possible reductions and associated costs are shown in the
table. Times in the table are given in weeks. Only activity 5 can be expedited two weeks.
Activities 1 and 9 cannot be expedited. The other activities can be expedited one week. (a)
Draw the CPM network and identify the critical path. How many weeks will the project
require under normal operations? What is the total project cost with penalty included? (b)
How could the project time be reduced to 12 weeks and what is the total project cost
including penalty? (c) How could the project time be reduced to 11 weeks and what is the
total project cost? (d) What is the lowest cost decision, 12 weeks or 11 weeks?
Activity
Immediate
Normal
Expedited
Normal
Expedited
cost (S)
predecessor
time
time
cost ($)
1
4
3
5,000
6,900
3,000
9,200
3
2
3,000
7,000
1
2
4
5
4
5
3
6.
4
9,000
13,000
3
4
6,000
7,800
7
4, 5
3
4,000
6,500
8
6
5
4
8,000
11,000
9.
7,8
1
500
1
500
Transcribed Image Text:7.14 The project detailed in the table below is contracted for delivery in 11 weeks, with a penalty clause requiring the contractor to pay a penalty of $5000 for each week late. The project must therefore be expedited. The possible reductions and associated costs are shown in the table. Times in the table are given in weeks. Only activity 5 can be expedited two weeks. Activities 1 and 9 cannot be expedited. The other activities can be expedited one week. (a) Draw the CPM network and identify the critical path. How many weeks will the project require under normal operations? What is the total project cost with penalty included? (b) How could the project time be reduced to 12 weeks and what is the total project cost including penalty? (c) How could the project time be reduced to 11 weeks and what is the total project cost? (d) What is the lowest cost decision, 12 weeks or 11 weeks? Activity Immediate Normal Expedited Normal Expedited cost (S) predecessor time time cost ($) 1 4 3 5,000 6,900 3,000 9,200 3 2 3,000 7,000 1 2 4 5 4 5 3 6. 4 9,000 13,000 3 4 6,000 7,800 7 4, 5 3 4,000 6,500 8 6 5 4 8,000 11,000 9. 7,8 1 500 1 500
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