Your company has just received an order from a good customer contract states that, starting on the thirteenth day from now, your until the job is completed. Indirect project costs amount to $200 p precedence relationships are given in Table below: TABLE 2.2 ELECTRIC MOTOR PROJECT DATA

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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- Draw the project network diagram. 
- What completion date would you recommend?

Your company has just received an order from a good customer for a specially designed electric motor. The
contract states that, starting on the thirteenth day from now, your firm will experience a penalty of $100 per day
until the job is completed. Indirect project costs amount to $200 per day. The data on direct costs and activity
precedence relationships are given in Table below:
TABLE 2.2 ELECTRIC MOTOR PROJECT DATA
Activity
A
B
C
D
E
F
G
H
Normal Time
(days)
4
7
5
6
3
11
4
3
Immediate
Normal Cost ($) Crash Time (days) Crash Cost ($) Predecessor(s)
1,000
3
None
1,400
4
2,000
4
1,200
5
900
2
2,500
800
300
6
3
1
1,300
2,000
2,700
1,400
1,100
3,750
1,450
500
None
None
A
B
C
D, E
F, G
Transcribed Image Text:Your company has just received an order from a good customer for a specially designed electric motor. The contract states that, starting on the thirteenth day from now, your firm will experience a penalty of $100 per day until the job is completed. Indirect project costs amount to $200 per day. The data on direct costs and activity precedence relationships are given in Table below: TABLE 2.2 ELECTRIC MOTOR PROJECT DATA Activity A B C D E F G H Normal Time (days) 4 7 5 6 3 11 4 3 Immediate Normal Cost ($) Crash Time (days) Crash Cost ($) Predecessor(s) 1,000 3 None 1,400 4 2,000 4 1,200 5 900 2 2,500 800 300 6 3 1 1,300 2,000 2,700 1,400 1,100 3,750 1,450 500 None None A B C D, E F, G
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