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What is the optimum duration of the outage at minimum total cost when overheads and other indirect costs of $3000 per day are included? Set
What is the optimum duration of the outage at minimum total cost when overheads and other indirect costs of $3000 per day are included? Set out your calculations using the table layout below
Activity I Normal Te days $ cost 12000 Te days $ rate/day Crashed $ cost 18000 8000 4000 1-2 1-3 2-4 2-5 3-4 3000 n/a 2 8000 n/a 5000 2000 4-7 3000 4500 4-8 6000 11000 6 8000 14000 4000 9000 5-6 6-9 7-9 8-9 2000 4000 2000 4000 Notes Project duration Progressive Total cost $ I Obtained Additional by direct cost reducing: Normal duration Progressive total direct cost $ etc. Activity I Normal Te days $ cost 12000 Te days $ rate/day Crashed $ cost 18000 8000 4000 1-2 1-3 2-4 2-5 3-4 3000 n/a 2 8000 n/a 5000 2000 4-7 3000 4500 4-8 6000 11000 6 8000 14000 4000 9000 5-6 6-9 7-9 8-9 2000 4000 2000 4000 Notes Project duration Progressive Total cost $ I Obtained Additional by direct cost reducing: Normal duration Progressive total direct cost $ etc
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