Question

In: Operations Management

The relevant project data are given as follows. Activity Predecessor(s) Normal time (weeks) Crash time Normal...

The relevant project data are given as follows.

Activity

Predecessor(s)

Normal time (weeks)

Crash time

Normal cost

Crash cost

Possible number of weeks to crash

Cost/week to expedite

A

--

7

6

$7,000

$8,000

B

A

2

1

5,000

7,000

C

A

4

3

9,000

10,200

D

B,C

5

4

3,000

4,500

E

D

2

1

2,000

3,000

F

D

4

2

4,000

7,000

G

E,F

5

4

5,000

8,000

a)    Draw the AOA (Activity-On-Arc) diagram as shown in Chapter 13's Excel Worksheets.

b) Formulate the problem of finding project completion time as a LP problem. [You would only need the first 3 columns of the table and the diagram from a) to do the job!]

c)    Reformulate the problem when crashing the project completion time of 3 weeks is required. That is, reformulate the problem when the project completion time is required to be shorted by 3 weeks. Obviously, crashing is based on shortening the project completion time by 3 weeks with the minimal additional cost. In order to formulate the problem, you need to fill in the blank columns of the table.

NEED EXCEL ANSWERS! DO NOT COPY AND PASTE THE ANSWER FROM OTHER POSTS!

Solutions

Expert Solution

a)

AOA diagram is following:

b)

LP model to determine the completion time of the project time is as follows:

Let Xi be the finish time of activity i,

Minimize Xg   (activity G is the final activity, so its finish time is the project completion time)

s.t.

Xa >= 7

Xb-Xa >= 2

Xc-Xa >= 4

Xd-Xb >= 5

Xd-Xc >= 5

Xe-Xd >= 2

Xf-Xd >= 4

Xg-Xe >= 5

Xg-Xf >= 5

Xi >= 0

Solution of the LP model using Excel Solver:

Create Excel model as follows:

EXCEL FORMULA:

Enter Solver Parameters:

Click Solve to generate the solution:

Click Solve

Minimum project completion time = 25 weeks

c)

Draw the table listing Max crash time and Crash cost per week
Max Crash time = Normal time - Crash time
Crash cost per week = (Crash Cost - Normal Cost) / Max Crash time
Activity Predecessor Normal Time Crash Time Normal Cost Crash Cost Max Crash Time Crash cost per week
A - 7 6 7,000 8,000 1 1,000
B A 2 1 5,000 7,000 1 2,000
C A 4 3 9,000 10,200 1 1,200
D B,C 5 4 3,000 4,500 1 1,500
E D 2 1 2,000 3,000 1 1,000
F D 4 2 4,000 7,000 2 1,500
G E,F 5 4 5,000 8,000 1 3,000

After shortening the project completion time by 3 weeks, project completion time = 25-3 = 22 weeks

----------------------

Revised LP model to shorten the project by 3 weeks is following:

Let Xi be the finish time of activity i,

and, Yi be the time by which, activity i must be crashed to shorten the project

Minimize 1000Ya+2000Yb+1200Yc+1500Yd+1000Ye+1500Yf+3000Yg

s.t.

Xa+Ya >= 7

Xb-Xa+Yb >= 2

Xc-Xa+Yc >= 4

Xd-Xb+Yc >= 5

Xd-Xc+Yd >= 5

Xe-Xd+Ye >= 2

Xf-Xd+Yf >= 4

Xg-Xe+Yg >= 5

Xg-Xf+Yg >= 5

Ya <= 1

Yb <= 1

Yc <= 1

Yd <= 1

Ye <= 1

Yf <= 2

Yg <= 1

Xg = 22

Xi, Yi >= 0

-------------------

Solution of the LP model is as follows:

Total crash cost = $ 3,700


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