Question

In: Operations Management

The table below presents durations, direct costs and immediate predecessors for each activity of a project...

The table below presents durations, direct costs and immediate predecessors for each activity of a project executed by a contracting company, under both normal and crash conditions. The weekly indirect cost is L.E. 40.

Activity Code

Immediate Predecessors

Normal Duration (week)

Normal Total Direct Cost (L.E)

Crash Duration (Week)

Crash Total Direct Cost (L.E)

Total Allowable crash Time (Week)

Cost Slope per Week

(L.E)

A

None

8

325

5

400

3

25

B

None

12

1200

11

1320

1

120

C

None

14

900

14

900

0

0

D

A

7

520

5

600

2

400

E

B,D

5

210

4

270

1

60

F

B

8

100

7

190

1

90

G

E

5

200

4

250

1

50

H

C,F

3

300

2

400

1

100

The Critical Path is A-D-E-G = 25 week

If the contract entitles the contracting company L.E. 80 for each week below the 26-week contract duration limit, Calculate the optimum project completion time?

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