Question
Made By You is a customized clothing company located in Seattle, Washington. The company offers an online service whereby customers can customize their clothes to
Made By You is a customized clothing company located in Seattle, Washington. The company offers an online service whereby customers can customize their clothes to fit their specific size, style, and budget. The company was founded in 2014 and had an initial public offering in 2020 with a valuation of $2.3 billion. The popularity of the customization service exceeded expectations and the company now needs to implement an automated clothing warehouse system to help streamline their operations and get accurate orders out more quickly. Hannah Jacobs, the clothing management specialist, is responsible for the system development process. Based on information Hannah received from key personnel in the company including engineering personnel, members of the warehouse management team, and the information technology implementation coordinator, she was able to create a list of tasks that need to take place for the project to succeed. These tasks along with their immediate predecessors and task duration estimates (all times are in weeks) are provided in the table below. In addition, the cost of each task, the number of weeks each task can be crashed, and the cost to crash each task 1 week are provided.
Task | Description | Immediate Predecessor | Optimistic Time | Most Likely Time | Pessimistic Time |
---|---|---|---|---|---|
A | Identify equipment requirements | None | 5 | 7 | 9 |
B | Solicit bids from vendors | None | 8 | 10 | 12 |
C | Select a system/vendor | A, B | 4 | 6 | 8 |
D | Place order for system | C | 5 | 7 | 15 |
E | Redesign warehouse layout | C | 6 | 10 | 14 |
F | Implement new warehouse design | E | 3 | 5 | 7 |
G | Design system interface | C | 4 | 6 | 20 |
H | Integrate the interface into the system | D, F, G | 4 | 7 | 10 |
I | Install the system | D, F | 5 | 7 | 15 |
J | Train system operators | H | 2 | 3 | 4 |
K | Test system | I, J | 3 | 4 | 5 |
Task | Normal Cost ($) | Crash Time (weeks) | Additional Cost to Crash 1 week ($) |
---|---|---|---|
A | 800 | 2 | 315 |
B | 800 | 2 | 280 |
C | 1200 | 2 | 420 |
D | 1600 | 4 | 210 |
E | 4000 | 3 | 700 |
F | 2400 | 2 | 330 |
G | 6400 | 3 | 450 |
H | 4000 | 2 | 420 |
I | 8000 | 3 | 480 |
J | 3200 | 1 | 240 |
K | 4000 | 1 | 300 |
Based on the information provided, answer the following questions.
- Draw a network diagram for this project. (3)
- How many weeks will be required to complete the project based on the normal time? (2)
- Based on your answer to part a, which activities are on the critical path? (2)
- What is the total cost required for completing this project on normal time? (2)
- What is the probability of completing the project in 40 weeks? Round calculations to at least 4decimal places. (3)
- If Hannah Jacobs wishes to finish the project 2 weeks sooner than the estimated projectcompletion time at the lowest cost, which activity(ies) should be crashed and by how much? (2)
- How much will finishing the project 2 weeks sooner increase the total project cost? (2)
- What is the maximum number of weeks that this project can be crashed? (2)
- How much would the total cost increase if the project was fully crashed? (2)
Note 1: You are expected to use the network diagram in part A to determine the answers to parts B and C based on the forward and backward pass.
Note 2: Excel Solver should be used to determine the answers parts F through H. Upload the Excel file along with your exam document. I must be able to see the Solver set up for credit to be given so make sure you save the file after you use solver before uploading to Blackboard.
Note 3: Assume that the expected task times are the normal task times when crashing.
Note 4: Your final answer to each of the question must be transferred to your exam document. Do not just upload the spreadsheet and require the answer to be obtained from that file.
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