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Development of Version 2.0 of a particular accounting software product is being considered by Jose Noguera's technology firm in Baton Rouge. The activities necessary
Development of Version 2.0 of a particular accounting software product is being considered by Jose Noguera's technology firm in Baton Rouge. The activities necessary for the completion of this project are listed in the following table: Quarter Demand Previous quarter's output 2500 units 1 2300 Beginning inventory 200 units 2 2400 Stock-out (back-order) cost $50 per unit 3 2600 Inventory holding cost $10 per unit at end of quarter 4 2100 Hiring workers $4 per unit Laying off workers $8 per unit Unit cost $30 per unit a. What is the critical path Overtime Subcontracting $10 extra per unit $60 per unit b. What is the project length? [16 WEEKS] Total project cost in normal time? c. If you wish to reduce the time required to complete this project by 1 week, which activity should be crashed, and how much will this increase the total cost? d. What is the maximum time that can be crashed? e. How much would costs increase?
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