In: Accounting
Problem 1
Chapter 7: Your hospital has applied for certification as a level 1 stroke center. It is critical that the following project is completed before the next Joint Commission survey in 18 weeks. Project activity times are listed in the table below.
| 
 Activity  | 
 Immediate Predecessors  | 
 Normal Time (NT) (weeks)  | 
 Normal Cost (NC) ($)  | 
 Crash Time (CT) (weeks)  | 
 Crash Cost (CC) ($)  | 
| 
 A  | 
 ---  | 
 6  | 
 $600  | 
 2  | 
 $1,400  | 
| 
 B  | 
 A  | 
 7  | 
 $200  | 
 3  | 
 $600  | 
| 
 C  | 
 ---  | 
 9  | 
 $500  | 
 6  | 
 $950  | 
| 
 D  | 
 C  | 
 2  | 
 $800  | 
 1  | 
 $1,200  | 
| 
 E  | 
 D  | 
 8  | 
 $1,600  | 
 5  | 
 $2,800  | 
| 
 F  | 
 B, D  | 
 5  | 
 $200  | 
 4  | 
 $400  | 
| 
 G  | 
 F  | 
 4  | 
 $400  | 
 3  | 
 $750  | 
ANSWER
ALL POSSIBLE PATHS:
ABFG = 22
CDFG = 20
CDE = 19
CRITICAL PATH = NETWORK CHAIN WITH THE LONGEST DURATION = ABFG = 22
DURATION OF CRITICAL PATH = 22
CRASHING
CRASH COST PER PERIOD = (CRASH COST - NORMAL COST) / (NORMAL TIME - CRASH TIME)
| 
 ACTIVITY  | 
 NORMAL TIME  | 
 CRASH TIME  | 
 NORMAL COST  | 
 CRASH COST  | 
 COST / PERIOD  | 
 TIMES CRASHED  | 
 ORDER  | 
 CRASH COST  | 
| 
 A  | 
 6  | 
 2  | 
 600  | 
 1400  | 
 200  | 
 0  | 
 0  | 
|
| 
 B  | 
 7  | 
 3  | 
 200  | 
 600  | 
 100  | 
 3  | 
 1ST, 2ND AND 4TH  | 
 300  | 
| 
 C  | 
 9  | 
 6  | 
 500  | 
 950  | 
 150  | 
 1  | 
 4TH  | 
 150  | 
| 
 D  | 
 2  | 
 1  | 
 800  | 
 1200  | 
 400  | 
 0  | 
 0  | 
|
| 
 E  | 
 8  | 
 5  | 
 1600  | 
 2800  | 
 400  | 
 0  | 
 0  | 
|
| 
 F  | 
 5  | 
 4  | 
 200  | 
 400  | 
 200  | 
 1  | 
 3RD  | 
 200  | 
| 
 G  | 
 4  | 
 3  | 
 400  | 
 750  | 
 350  | 
 0  | 
 0  | 
|
| 
 TOTAL COST  | 
 4300  | 
 650  | 
DIFFERENCE = 650
**SINCE NO OTHER DATA SUCH AS PENALTY COST OR DAILY COST OF THE PROJECT IS PROVIDED.

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