Question

In: Operations Management

A Project plan has been developed by the project team. The scheduled data are given in...

A Project plan has been developed by the project team. The scheduled data are given in the following table

Activity

predecessor

Normal time

Crash Time

Normal cost

Crash COST

COST SLOPE

A

-

12

7

3000

5000

400

B

A

8

5

2000

3500

500

C

A

4

3

4000

7000

3000

D

B,C

12

9

50000

71000

7000

E

B,C

4

1

500

1100

200

F

E

4

1

500

1100

200

G

D,F

4

3

15000

22000

7000

Requirements:

  • Find the minimum project completion time and corresponding cost.
  • If the customer wants to complete the project in 30 Wks. Find the cost of the project.
  • What is the minimum project completion cost and corresponding time. If indirect cost is Rs 1000 per week.

Solutions

Expert Solution

Note that the total cost has increased. So, the optimal cost-time trad-off is at Step-3 i.e. 27 weeks duration with total cost = $106,200

-----------------------

Repeat step-2 but this time, just reduce the duration of 'B' by one week only.

So,

the minimum cost of achieving 30-weeks duration = $107,500

keosha answered 1 year ago
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