1. [Chapter 3: 10 points). Maser Building constructs custom-built medium-sized houses. The most recent project undertaken by the building contractor requires seven different activities. The building contractor has the following list of relevant activities, their immediate predecessors, and their time estimate. 12 3 Activity Activity Descriptions Precedence Time in weeks Cost in Dollars | relationship Normal time Crash time Normal costa Normal time Crash time Normal cost Crash cost Design house and obtain financing None 10 3,000 5,000 Lay foundation 8 5 20,000 35,000 Order and receive materials 40,000 70,000 Build house B,C 50,000 71,000 Select paint B,C 5,000 11,000 F Select carpet 5,000 11,000 G Finish work DF 4 15,000 22,000 For this project, the estimated indirect cost is $2,500 per week. However, after week 31, if the house is not ready, the contractor will pay a penalty of $1,500 per week. For every week that the project duration is shortened - i.e., to 31 weeks - the contractor saves one week of the penalty and indirect costs, or $4,000. For reduction beyond week 31, the savings are only the weekly indirect costs of $2,500. a) Construct the project network. Determine the critical path. b) Compute the maximum allowable crash time per activity (for each activity) and the crash cost per week for each activity. c) What is the total cost required for completing the house in normal time? d) Suppose that the customer needed the house in 31 weeks and wanted to know how much extra cost would be incurred to complete the house in 31 weeks. Crash the project to 31 weeks. By how much will crash increase (or decrease) the total cost of the project (after accounting for the savings in penalty and indirect costs)? e) If the customer needed the house in 30weeks, would you crash the house project to 30 weeks? Why? 1. [Chapter 3: 10 points). Maser Building constructs custom-built medium-sized houses. The most recent project undertaken by the building contractor requires seven different activities. The building contractor has the following list of relevant activities, their immediate predecessors, and their time estimate. 12 3 Activity Activity Descriptions Precedence Time in weeks Cost in Dollars | relationship Normal time Crash time Normal costa Normal time Crash time Normal cost Crash cost Design house and obtain financing None 10 3,000 5,000 Lay foundation 8 5 20,000 35,000 Order and receive materials 40,000 70,000 Build house B,C 50,000 71,000 Select paint B,C 5,000 11,000 F Select carpet 5,000 11,000 G Finish work DF 4 15,000 22,000 For this project, the estimated indirect cost is $2,500 per week. However, after week 31, if the house is not ready, the contractor will pay a penalty of $1,500 per week. For every week that the project duration is shortened - i.e., to 31 weeks - the contractor saves one week of the penalty and indirect costs, or $4,000. For reduction beyond week 31, the savings are only the weekly indirect costs of $2,500. a) Construct the project network. Determine the critical path. b) Compute the maximum allowable crash time per activity (for each activity) and the crash cost per week for each activity. c) What is the total cost required for completing the house in normal time? d) Suppose that the customer needed the house in 31 weeks and wanted to know how much extra cost would be incurred to complete the house in 31 weeks. Crash the project to 31 weeks. By how much will crash increase (or decrease) the total cost of the project (after accounting for the savings in penalty and indirect costs)? e) If the customer needed the house in 30weeks, would you crash the house project to 30 weeks? Why
