In: Operations Management
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?