Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[Take your time with this question! You may want to make a chart like we used in class to keep track of paths and cost

image text in transcribed
image text in transcribed
[Take your time with this question! You may want to make a chart like we used in class to keep track of paths and cost savings as you "crash" the project.] Consider the following project. Assume indirect costs to be $10,000 per week, and that there are no penalty costs for late completion. Total "normal" direct costs, to complete the project in "normal" time, are $200,000; they would like to "crash" the project as long as it saves money (i.e. find the MINIMUM COST SCHEDULE). What would be the total REDUCTION in project duration and the REDUCTION in total project costs if the project is crashed to achieve the minimum cost (Note that the table provides normal time, maximum amount that normal time can be reduced by, and cost per week to reduce normal time). For the sake of ensuring that you start on the right foot, the paths and durations are as follows: A-D-F-H=22weeksB-D-F-H=21weeksC-E-G-H=23weeksC-E-G-I=21weeks

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operations management

Authors: Nigel Slack, Stuart Chambers, Robert Johnston

6th edition

273731602, 978-0273731603

More Books

Students also viewed these General Management questions