Wear It Again is an online personal styling service in the United States. It uses recommendation algorithms and data science to personalize clothing items based on size, budget and style. The company was founded in 2011 and had an initial public offering in 2017 with a valuation of $1.6 billion. The company has expanded so quickly that they find themselves in need of adopting an automated clothing warehouse system to help streamline their picking, packing, and shipping operations. Their clothing management specialist, Kerry Goins, has been charged with the automated warehouse system development process. She talked with several key personnel in the company including members of the warehouse management team, engineering personnel, and the information technology implementation coordinator to determine what tasks need to take place in order to ensure the project is a success. The following tasks were identified along with their immediate predecessors and task duration estimates (all times are in weeks). In addition, they determined the cost of each task, the time each task would take if it were completely crashed, and the cost to crash each task 1 week. Task Description Immediate Predecesssor Optimistic Time Most Likely Time Pessimistic Time A Identify equipment requirements None 4 6 8 B Solicit bids from vendors None 6 8 16 C Select a system/vendor A, B 2 4 6 D Place order for system C 8 10 24 E Redesign warehouse layout C 7 10 13 F Implement new warehouse design E 4 6 8 G Design system interface C 4 6 20 H Integrate the interface into the system D, F, G 4 6 8 I Install the system D, F 4 6 14 J Train system operators H 3 4 5 K Test system I, J 2 4 6 Task Normal Cost ($) Crashed Time Additional Cost to Crash 1 wk ($) A 1,000 4 450 B 1,000 7 400 C 1,500 2 600 D 2,000 8 300 E 5,000 7 1000 F 3,000 4 550 G 8,000 5 750 H 5,000 4 700 I 10,000 4 800 J 4,000 3 400 K 5,000 3 500 Based on the information provided, answer the following questions. a) Create a network diagram for this project. b) How many weeks will be required to complete the project based on the normal time? c) Based on your answer to part a, which activities are on the critical path? d) What is the total cost required for completing this project on normal time? e) What is the probability of completing the project in 40 weeks? Round calculations to at least 4 decimal places. f) If Kerry Goins wishes to finish the project 2 weeks sooner, which activity(ies) should be crashed and by how much? g) How much will finishing the project 2 weeks sooner increase the total project cost? h) What is the maximum number of weeks that this project can be crashed? i) How much would the total cost increase if the project was fully crashed? Note 1: You are expected to use the network diagram in par a to determine the answers to parts b and c. Note 2: Excel Solver should be used to determine the answers parts f-h.
Wear It Again is an online personal styling service in the United States. It uses recommendation
algorithms and data science to personalize clothing items based on size, budget and style. The company
was founded in 2011 and had an initial public offering in 2017 with a valuation of $1.6 billion. The
company has expanded so quickly that they find themselves in need of adopting an automated clothing
warehouse system to help streamline their picking, packing, and shipping operations. Their clothing
management specialist, Kerry Goins, has been charged with the automated warehouse system
development process. She talked with several key personnel in the company including members of the
warehouse management team, engineering personnel, and the information technology implementation
coordinator to determine what tasks need to take place in order to ensure the project is a success. The
following tasks were identified along with their immediate predecessors and task duration estimates (all
times are in weeks). In addition, they determined the cost of each task, the time each task would take if
it were completely crashed, and the cost to crash each task 1 week.
Task Description Immediate
Predecesssor
Optimistic
Time
Most Likely
Time
Pessimistic
Time
A Identify equipment requirements None 4 6 8
B Solicit bids from vendors None 6 8 16
C Select a system/vendor A, B 2 4 6
D Place order for system C 8 10 24
E Redesign warehouse layout C 7 10 13
F Implement new warehouse design E 4 6 8
G Design system interface C 4 6 20
H Integrate the interface into the system D, F, G 4 6 8
I Install the system D, F 4 6 14
J Train system operators H 3 4 5
K Test system I, J 2 4 6
Task Normal Cost ($) Crashed Time Additional Cost to Crash 1 wk ($)
A 1,000 4 450
B 1,000 7 400
C 1,500 2 600
D 2,000 8 300
E 5,000 7 1000
F 3,000 4 550
G 8,000 5 750
H 5,000 4 700
I 10,000 4 800
J 4,000 3 400
K 5,000 3 500
Based on the information provided, answer the following questions.
a) Create a network diagram for this project.
b) How many weeks will be required to complete the project based on the normal time?
c) Based on your answer to part a, which activities are on the critical path?
d) What is the total cost required for completing this project on normal time?
e) What is the probability of completing the project in 40 weeks? Round calculations to at least 4
decimal places.
f) If Kerry Goins wishes to finish the project 2 weeks sooner, which activity(ies) should be crashed
and by how much?
g) How much will finishing the project 2 weeks sooner increase the total project cost?
h) What is the maximum number of weeks that this project can be crashed?
i) How much would the total cost increase if the project was fully crashed?
Note 1: You are expected to use the network diagram in par a to determine the answers to parts b and c.
Note 2: Excel Solver should be used to determine the answers parts f-h.
Note 3: Assume that the expected task times are the normal task times when crashing.
Note 4: Your final answer to each of the question must be transferred to your document.
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