Question

The Advanced Tech Company has a project to design an integrated information database for a major bank. Data for the project are given in the Table. Indirect project costs amount to $300 per day. The company will incur a $150 per day penalty for each day the project lasts beyond day 14. What would be the least cost to achieve this desired result?

Activity	Normal Time (days)	Normal Cost ($)	Crash Time (days)	Crash Cost ($)	Immediate Predecessor(s)
A	6	1,000	5	1,200	—
B	4	800	2	2,000	—
C	3	600	2	900	A, B
D	2	1,500	1	2,000	B
E	6	900	4	1,200	C, D
F	2	1,300	1	1,400	E
G	4	900	4	900	E
H	4	500	2	900	G

Answer 1

Please refer the images for the solutions:

Note: We crash

A by 1 day, C by 1 day, E by 2 days, G cannot be crashed, H by 2 days. So total reduced days are 6 days.

23 - 6 DAYS = 17 DAYS. (minimum)