Use the information in the charts below and the activity on node network to comp
ID: 357421 • Letter: U
Question
Use the information in the charts below and the activity on node network to compute the direct and total costs for each project duration. Table 1 lists the normal and crash costs for each activity in the project. The "Crash cost" column lists the cost to reduce that activity by one week. For example, activity A takes 10 weeks to complete with a cost of 40. You can decrease it to 9 weeks for the normal cost, plus the crash cost (40 + 80 = 120). The "Maximum Crash Time" is the number of times that activity can be crashed. Table 2 lists the indirect costs for each project duration. The direct cost column is for you to fill in based on which activities you crash in the activity network. The value that is filled in (300) is merely all the normal costs added together. The image at the bottom shows the precedence relationships between the activities. You do not need to present a filled in Table 2, you can just answer the 2 questions below. What is the optimum cost-time duration? Which activities would be crashed to reach that duration? The customer would like the project to be completed as fast as possible and is willing to offer you a bonus of $40 for every additional week (i.e. $40 for 1 week early, $80 for 2 weeks early, etc.) that you complete the project ahead of the ‘normal schedule’ (27 weeks). When would you try and complete the project if this incentive were in play? Why?Tip: You should identify the critical path first.
Table 1
Activity
Crash cost per time unit reduction (slope)
Maximum Crash Time
Normal Time
Normal Cost
A
80
2
10
40
B
30
3
8
10
C
40
1
5
80
D
50
2
11
50
E
100
4
15
100
F
30
1
6
20
Table 2
Duration
Direct Costs
Indirect Costs
Total Costs
27
300
300
600
26
240
25
180
24
120
23
60
22
50
Could someone help me solve this question. I am having a lot of trouble. This is all that was given for the questions
Activity
Crash cost per time unit reduction (slope)
Maximum Crash Time
Normal Time
Normal Cost
A
80
2
10
40
B
30
3
8
10
C
40
1
5
80
D
50
2
11
50
E
100
4
15
100
F
30
1
6
20
Center - Re BPAA dldlU9 U10-LU Direct Costs 26Explanation / Answer
Critical path is A-D-F.To start Activity F, we have to complete activity A-D, B and C-E. Activity A-D takes 21 weeks and C-E takes 20 weeks. We have to crash activity C-E and A-D so that it can be completed in earliest. Activity to be crashed and cost
A- 2 weeks cost- 40+120= 160
D- 2 weeks, cost= 50+100=150
C -1 week, Cost= 80+40= 120
E- 2 weeks, Cost= 100+200= 300
F -1 week, Cost= 20+30= 50
The project will be completed in 22 weeks. Total cost will be direct cost 780 and indirect cost 50. Total cost= 830.
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