Quiz # 2

1.Consider the following activities of a project:

Activity1-21-31-41-52-63-63-74-75-77-66-87-8

Normal time,

Weeks2 46342543647

The company loses P1,000 for every week the project lasts beyond 17 weeks.For each of the following proposals taken independently, discuss why (or why not) they are good ideas:

Activity 4-7 can be reduced to 1 week by using overtime and extra labor at a total cost of P2000.

Activity 7-6 can be reduced to 3 weeks by taking resources from Activity 7-8, thereby increasing its expected time to 10 weeks at no additional cost.

Activity 3-7 can be reduced to 2 weeks at a total cost of P1000.

Activity 6-8 can be reduced to 1 week by taking resources from Activity 7-8, thereby increasing its expected time to 9 weeks at no additional cost.

2.The activities involved in the production and assembly of a certain special customer order are as follows:

Normal Time

Normal Cost

Crashed Time

Crashed Cost

Activity

(Days)

(Pesos)

(Days)

(Pesos)

1-2

4

1,000

3

1,300

1-4

7

1,400

4

2,000

1-3

5

2,000

4

2,700

2-5

6

1,200

5

1,400

4-5

3

900

2

1,100

3-6

11

2,500

6

4,000

5-6

4

800

3

1,450

6-7

3

300

1

500

The firm will experience a penalty of P100 per day starting on the 13^th day from now.The project's indirect costs are estimated to be P300 per day.When would you recommend that the company plan to complete the project and what would the resultant critical path be?

3.A distributor buys a product from three plants and sells the product to seven customers.The profit he makes for each unit of product sold and the corresponding demand of each customer are as follows:

Customer

Profit per Unit (in P) Demand

North Plant

South Plant

West Plant

A

1.75

1.85

1.00

10

B

1.50

2.00

1.15

5

C

0.90

1.65

1.25

15

D

1.00

1.65

1.55

20

E

1.10

1.50

1.15

10

F

1.55

1.00

1.10

20

G

1.00

1.20

0.50

15

Total

95

The distributor used to have more than 3 sources of the product.But due to the depressed economy, his sources were reduced to only 3 plants with an aggregate supply of only 90 units as follows: 30 units from North Plant, 30 units from South Plant, and another 30 units from West Plant.Furthermore, due to standardization, his customers are not willing to accept partial supply from any distributor, i.e., a customer will buy his total requirement from only one distributor.What supply network should the distributor establish which will maximize his profits? Which customer should he give up?