Given the following project: Activity Predecessor Normal Time (day) Normal Cost  ($) Crash Time (day) Crash Cost  ($) A - 4 800 2 1300 B - 10 1200 7 2400 C A 6 1100 4 1700 D A,B 7 1000 4 1600 E C 10 2000 8 3000 F C,D 5 900 - - (a) Draw the network and find the critical path duration of the project, total cost of project using normal times.   (b) Calculate the maximum time reduction and crash cost-per-day (all activities may be partially crashed) for each activity. Then fill the table below. (Note: Activity “F” cannot be crashed) Activity Maximum Time Reduction (day) Cost to Crash per Period ($/day) A     B     C     D     E     F     (c) Find the optimal way of getting a 20-day delivery time. What is the project cost? (d) Find the optimal way of getting a 18-day delivery time. What is the project cost?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Given the following project:

Activity

Predecessor

Normal Time (day)

Normal Cost

 ($)

Crash Time (day)

Crash Cost

 ($)

A

-

4

800

2

1300

B

-

10

1200

7

2400

C

A

6

1100

4

1700

D

A,B

7

1000

4

1600

E

C

10

2000

8

3000

F

C,D

5

900

-

-

(a) Draw the network and find

  • the critical path
  • duration of the project,
  • total cost of project using normal times.

 

(b) Calculate the maximum time reduction and crash cost-per-day (all activities may be partially crashed) for each activity. Then fill the table below. (Note: Activity “F” cannot be crashed)

Activity

Maximum Time Reduction (day)

Cost to Crash per Period ($/day)

A

 

 

B

 

 

C

 

 

D

 

 

E

 

 

F

 

 

(c) Find the optimal way of getting a 20-day delivery time. What is the project cost?

(d) Find the optimal way of getting a 18-day delivery time. What is the project cost?

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