Question

In: Operations Management

What is the minimum cost of crashing the following project that Roger Solano manages at Slippery...

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

Solutions

Expert Solution

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


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