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[Chapter 3: 10 points]. Suppose you are the project manager of the pharmaceutical company in question (3). You are considering what activities you would crash

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[Chapter 3: 10 points]. Suppose you are the project manager of the pharmaceutical company in question (3). You are considering what activities you would crash if you want to finish the project in 35 weeks. Activity Activity Descriptions Precedence Time in weeks Cost in Dollars relationship Normal Crash Normal Crash cost time (NT) time (CT) cost (NC) CC A Identify strains None 4 3 8,000 11,000 B Prepare hybridized A 7 5 30,000 35,000 viruses C Verify hybrid viruses A 3 3 6,000 6,000 D Distribute hybrid B 4 24,000 28,000 viruses to manufacturings E Develop testing D 16 12 60,000 72,000 reagents F Setup manufacturing C 5 4 5,000 6,500 G Manufacturer vaccine | E, F 2 2 6,000 6,000 H Test vaccine in house G 3 2 4,000 4,000 Vaccine packaging G 2 4,000 5,000 and release J Clinical test H, I 4 2 4,000 6,400 K Review and release 2 5,000 5,000 vaccine (Health Canada) For this project, the estimated indirect cost is $2,000 per week. However, after week 40, if the vaccine is not ready, the company will pay a penalty of $2,500 per week. For every week that the project duration is shortened - i.e., to 40 weeks - the contractor saves one week of the penalty and indirect costs, or $4,500. For reduction beyond week 40, the savings are only the weekly indirect costs of $2,000. a) Compute the total allowable crash time per activity and the crash cost per week for each activity. (2) b) What is the total cost required for completing the vaccine in normal time (including the penalty and indirect costs)? (2) ) Suppose that the nation of Narnia needed the vaccines in 40 weeks and wanted to know how much extra cost would be incurred to develop the vaccine at this time. Crash the project to 35 weeks. Will this increase or decrease the total cost of the project? Would you crash the project to 40 weeks? Why or why not? (2) d) Would you crash the project to 35 weeks if the customer requests to do so? Why? Would you crash the project to 30 weeks? Why? (2) e) Determine the slack for activities A, B, C, E, H, & J. (2)

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