At the starting point of 20 time periods duration of a project, the total direct cost...

At the starting point of 20 time periods duration of a project, the total direct cost is 6,000 and total indirect cost is 2,000 with a total of 8,000. After crashing a critical activity that total drops to 7,940 at 19 time periods with total direct cost of $6040. The total cost drops again to 7,890 at 18 with total direct cost $6090, stays 7,890 at 17 but total direct cost becomes $6190, rises to 8,190 at 16 with total direct cost $6590. The total cost finally rises again to 8,490 at 15 with total direct cost at $6990. The project duration cannot be reduced further.

a) Show the project cost-duration graph.

b) In which time period (s) is the total cost minimum or optimal.

c) How can a cost-duration graph be used by the project manager?

Expert Solution

The graphs are shown below

b) Period 17 and 18 the total cost is minimum as shown from the graph

c) Using the cost-duration graph a manager can always check which is the lowest point or the lowest cost point and the corresponding duration which can help him to identify the optimum duration for the project

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keosha answered 1 week ago

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