Question

Construct the following network(AOA) and determine the minimum total cost to complete the project if indirect cost is Rs.1500 per day.

Activity	NT	CT	NC	CC
1-2	6	4	6000	7800
1-3	7	4	3000	4200
2-3	4	1	5000	9200
2-5	6	5	6000	7500
3-4	7	3	2000	6800
4-5	3	1	2000	4000
4-6	7	3	4000	5600
5-6	5	4	3000	4100

Answer 1

AOA network is as follows:

Create Excel model as follows:

Enter Solver Parameters as follows:

Click Solve to generate the solution. After that, values appear automatically in yellow cells

Click OK

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Minimum total crash cost and indirect cost = 11100+22500 = Rs 33,600

Minimum total cost to complete the project = Rs 64,600 (note that this includes the normal cost of Rs 31,000)