2. Using the network above and the additional information below, find: (a) The c

Question

2. Using the network above and the additional information below, find: (a) The crash cost per day (b) Which activities should be crashed to meet a project deadline of 13 days at minimum cost. Assume partial crashing is allowed. Crash Time Activity (days(total) Crashed Cost Normal Time (days) Normal Cost S300 325 4 550 150 11. Reconsider Problem 2, assuming a fixed overhead cost of S30 per day but no project deadline. What is the least-cost crash program? What if the overhead cost was $40? What if it was $60

Explanation / Answer

AS per policy only first question will be answered

(a)

(b) Critical Chain is B-C-D since it is the longest chain with total duration of 15 days. We need to crash critical chain activities by 2 days to meet 13 days deadline

B has the lowest crash cost per day and hence it needs to be crashed by 2 days to meet 13 days deadline in the minimum cost.

Activity Crash Time (A) Crashed cost (B) Normal time ( C) Normal Cost (D) Crash cost per day
(B-D)/(C-A) A 3 500 4 300 200 B 1 325 3 250 37.5 C 4 550 7 400 50 D 3 250 5 150 50

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