Use the information contained below to compress one time unit per move using the least cost method. Reduce the schedule until you reach the crash point of the network. For each move, record which activity was crashed, the total direct cost, total indirect cost, and total project cost. Assume the total indirect cost for the project is $1,000 and there is a savings of $60 per time unit reduced. a) What is the optimum cost-time schedule for the project? b) What is the total direct cost, total indirect cost, and total project cost at the optimum cost-time schedule for the project? c) Plot the project cost-duration graph for the project showing the three different types of costs. Note: The correct normal project duration and total direct cost are provided. WORK MUST BE DONE IN MICROSOFT EXCEL (WITH FORMULAS AND EXPLANATION, NOT BY HAND

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Use the information contained below to compress one time unit per move using the least cost method. Reduce the schedule until you reach the crash point of the network. For each move, record which activity was crashed, the total direct cost, total indirect cost, and total project cost. Assume the total indirect cost for the project is $1,000 and there is a savings of $60 per time unit reduced.

a) What is the optimum cost-time schedule for the project?

b) What is the total direct cost, total indirect cost, and total project cost at the optimum cost-time schedule for the project?

c) Plot the project cost-duration graph for the project showing the three different types of costs.

Note: The correct normal project duration and total direct cost are provided.

WORK MUST BE DONE IN MICROSOFT EXCEL (WITH FORMULAS AND EXPLANATION, NOT BY HAND

A
2x
Act.
A
B
с
D
E
F
G
Crash Cost
(Slope)
B
3
C
5
100
40
60
20
40
Maximum
Crash Time
3
E5
F
4
0
1
1
2
1
1
0
Normal Normal
Time
Cost
2
3
5
3
5
4
2
G
2x
100
200
200
200
200
150
150
Project duration 14
Total direct cost 1,200
Transcribed Image Text:A 2x Act. A B с D E F G Crash Cost (Slope) B 3 C 5 100 40 60 20 40 Maximum Crash Time 3 E5 F 4 0 1 1 2 1 1 0 Normal Normal Time Cost 2 3 5 3 5 4 2 G 2x 100 200 200 200 200 150 150 Project duration 14 Total direct cost 1,200
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