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The following table refers to a building project. (Please focus on parts b and c) Activity Duration (months) Predecessors A 7 None B 10 None

The following table refers to a building project. (Please focus on parts b and c)

Activity Duration (months) Predecessors
A 7 None
B 10 None
C 7 B
D 8 A
E 6 A
F 5 E
G 10 C, D, F
H 11 E
I 2 G,H

a. Draw the network diagram of the project and identify the critical path, its duration, and the activity slacks.

Consider the additional Time/Cost trade-off data.

Activity

Normal Duration

(months)

Normal Cost ($)

Crash Duration

(months)

Crash Cost ($)

A 7 7,000 5 21,000
B 10 10,000 8 30,000
C 7 7,000 5 21,000
D 8 8,000 6 24,000
E 6 6,000 4 18,000
F 5 5,000 3 15,000
G 10 10,000 8 30,000
H 11 11,000 9 33,000
I 2 2,000 Cannot be crashed Cannot be crashed

b. Assume the overhead costs for this project are $2,500/month. Also, a penalty of $10,000 is assessed for each month the project is delayed beyond month 25. What is the optimal crashing strategy? What is the net benefit of the optimal crashing strategy? Please describe your crashing strategy step-by-step.

c. What is the optimal project duration? What are the critical paths as a result of your crashing?

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