Your company has just received an order from a good customer for a specially designed electric motor. The contract states that, starting on the 13th day from now, your firm will experience a penalty of $100 per day until the job is completed. Indirect project costs amount to $200 per day. The data on direct costs and activity precedence relationships are given in Table. Electric Motor Project Data Activity Normal Time(days) Normal Cost ($) Crash Time (days) Crash Cost ($) ImmediatePredecessor(s) A B C D E F G H 4 7 5 6 3 11 4 3 1000 1400 2000 1200 900 2500 800 300 3 4 4 5 2 6 3 1 1300 1200 2700 1400 1100 3750 1450 500 None None None A B C D,E F,G a. Draw the project network diagram.b. What completion date would you recommend?

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
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Your company has just received an order from a good customer for a specially designed electric motor. The contract states that, starting on the 13th 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.

Electric Motor Project Data
Activity Normal Time
(days)
Normal Cost ($) Crash Time (days) Crash Cost ($) Immediate
Predecessor(s)

A

B

C

D

E

F

G

H

4

7

5

6

3

11

4

3

1000

1400

2000

1200

900

2500

800

300

3

4

4

5

2

6

3

1

1300

1200

2700

1400

1100

3750

1450

500

None

None

None

A

B

C

D,E

F,G

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

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