In: Operations Management
What is the minimum cost of crashing the following project that Roger Solano manages at Slippery Rock University by 4 days? $______________
Activity | Normal Time (days) | Crash Time (days) | Normal Cost | Total Cost with Crashing | Immediate Predecessor(s) |
A | 6 | 5 | $800 | $1,100 | - |
B | 8 | 6 | $300 | $400 | - |
C | 6 | 5 | $600 | $650 | - |
D | 6 | 3 | $750 | $1,500 | A |
E | 5 | 3 | $1,200 | $1,650 | C |
a. |
$ 3550 |
|
b. |
$ 1550 |
|
c. |
$ 3800 |
|
d. |
$ 2500 |
Paths from start to end of project network is as follows:
Path |
Duration |
A-D |
6 + 6 = 12 days |
B |
8 days |
C-E |
6 + 5 =11 days |
Critical Path: A-D and project duration is 12 days.
Crashing principle: Crash only critical activities and prefer to crash the activity with lowest crashing cost per day.
The crashing cost per day is calculated is as follows:
Activity |
Normal Time (days) |
Crash Time (days) |
Normal Cost |
Total Cost with Crashing |
Immediate Predecessor(s) |
Allowable Crashing |
Crashing Cost |
Crashing cost per day |
A |
6 |
5 |
$800 |
$1,100 |
- |
1 |
$300 |
300 |
B |
8 |
6 |
$300 |
$400 |
- |
2 |
$100 |
50 |
C |
6 |
5 |
$600 |
$650 |
- |
1 |
$50 |
50 |
D |
6 |
3 |
$750 |
$1,500 |
A |
3 |
$750 |
250 |
E |
5 |
3 |
$1,200 |
$1,650 |
C |
2 |
$450 |
225 |
A-D is critical path, and lowest cras
The crashing schedule is as shown below:
Crashing Sequence |
0 |
1 |
2 |
3 |
4 |
Critical Paths |
A-D |
A-D |
A-D C-E |
A-D C-E |
A-D C-E |
Lowest crashing cost per week activity (crashing cost) |
D ($250/ DAY) |
D ($250/ DAY) C ($50/ DAY) |
D ($250/ DAY) E ($225/ DAY) |
A ($300/ DAY) E ($225/ DAY) |
|
Activity Crashed |
None |
D |
D, C |
D, E |
A, E |
Crashing Duration |
0 |
1 |
1 |
1 |
1 |
Project duration |
12 |
11 |
10 |
9 |
8 |
A-D |
12 |
11 |
10 |
9 |
8 |
B |
8 |
8 |
8 |
8 |
8 |
C- E |
11 |
11 |
10 |
9 |
8 |
Crash cost |
$0 |
$250 |
$300 |
$475 |
$525 |
Cum. Crash cost |
$0 |
$250 |
$550 |
$1025 |
$1550 |
Thus, to crash the project duration by 4 DAYS, the minimum additional cost required = $1550