Using the data provided in the picture added Draw a network for the work package showing the activities, critical path and package duration. Assume the client wishes the package to be completed within 32 weeks. Calculate the most cost effective way of completing the package within this time, giving the cost increase associated with this crash sequence. You should start with the activity with the lowest cost per unit crash time and progress to the activity with the highest cost per unit crash time. Assume liquidated and ascertained damages apply at a rate of GBP 30,000 per week for completion later than the end of week 32. Balancing crash costs against damages costs, calculate the duration that gives the lowest total project cost.
Using the data provided in the picture added Draw a network for the work package showing the activities, critical path and package duration. Assume the client wishes the package to be completed within 32 weeks. Calculate the most cost effective way of completing the package within this time, giving the cost increase associated with this crash sequence. You should start with the activity with the lowest cost per unit crash time and progress to the activity with the highest cost per unit crash time. Assume liquidated and ascertained damages apply at a rate of GBP 30,000 per week for completion later than the end of week 32. Balancing crash costs against damages costs, calculate the duration that gives the lowest 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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Question
Using the data provided in the picture added
- Draw a network for the work package showing the activities, critical path and package duration.
- Assume the client wishes the package to be completed within 32 weeks. Calculate the most cost effective way of completing the package within this time, giving the cost increase associated with this crash sequence. You should start with the activity with the lowest cost per unit crash time and progress to the activity with the highest cost per unit crash time.
- Assume liquidated and ascertained damages apply at a rate of GBP 30,000 per week for completion later than the end of week 32. Balancing crash costs against damages costs, calculate the duration that gives the lowest total project cost.
Transcribed Image Text:Activity Normal duration
(weeks)
A-B
A-C
A-E
B-D
C-F
C-I
D-F
E-F
E-K
F-G
F-H
G-I
G-J
H-J
H-K
I-M
J-M
K-M
1
6
2
2
8
2
2
3
3
10
3
8
2
2
2
10
6
3
Crash duration
(weeks)
1
4
1
1
7
1
1
2
2
6
2
7
1
1
1
8
4
2
Normal cost
(GBP)
20,000
20,000
10,000
100,000
30,000
60,000
100,000
70,000
150,000
80,000
50,000
40,000
50,000
10,000
150,000
100,000
60,000
20,000
Crash cost
(GBP)
20,000
40,000
15,000
150,000
60,000
80,000
200,000
140,000
250,000
160,000
350,000
80,000
100,000
20,000
450,000
200,000
650,000
120,000
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