Jason Ritz, district manager for Gumfull Foods, Inc., is in charge of opening a new fast food outlet in the college town of Clarity. His major concern is the hiring of a manager and a cadre of hamburger cooks, assembler, and dispensers. He also has to coordinate the renovation of a retailer. Ritz has gathered the data shown in Table

Top management told Ritz that the new outlet is to be opened as soon as possible. Every week that the project can be shortened will save the firm $1,200 in the lease costs. Ritz thought about how to save time during the project and came up with two possibilities. One was to employ Arctic, Inc, a local employment agency, to locate some good prospects for the manager's job. This approach would save three weeks in activity A and cost Gumfull Foods $2,500. The other was to add a few workers to shorten the time for activity B by two weeks at an additional cost of $2,700.
Help Jason Ritz by answering the following questions;
a. How long is the project expected to take?
b. Suppose that Ritz has a personal goal of completing the project in 14 weeks. What is the probability that it will happen this quickly?
c. What additional expenditures should be made to reduce the project's duration? Use the expected time for each activity as though it were certain

Transcribed Image Text:

DATA FOR THE FAST-FOOD OUTLET PROJECT Time (weeks) Activity Description Immediate Predecessor(s) a A Interview at college for new manager B Renovate building C Place ad for employees and intarview applicants D Have new manager prospects visit E Purchase equipment for new outlet and install F Check employee applicant references and make final selection G Check references for new manager and make final selection 6 17 2 12 H Hold orientation meetings and do payroll paperwork E, F, G