PLEASE ANSWER PROBLEM 11!!! 2. Using the network above and the additional inform

Question

PLEASE ANSWER PROBLEM 11!!!

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

11.

From Part 2

We can see the critical path of Project is B-C-D with duration = 15 days

Project Duration without crashing = 15 days

Total Cost without crashing = Cost of all activities + Overhead cost * Project Duration = Sum of Normal cost of alll activities + 15*30 = 1100+450 = 1550

Find Crash cost per day of different activities

We can see lowest cost per day is for Activities D and we can reduce it by 3 days with additional cost of 250

Post Crashing activity by 3 days

Project Duration = 15-3 = 12

Now Project Cost = Cost of all activities + Overhead cost * Project Duration + Crash cost = 1100 + 30*12 +250 = 1100 +360+250 = 1710 which is higher than original duration cost

so for least -cost crash program , Crash cost < (Reduce in project Duration due to crash)* Overhead cost

so by Reducing D by 3 days

Crash cost = 250

with Overhead cost = 30

Reduction in project cost due to crashing = 30*3 = 90

However additional cost of 250 was taken so net buget will increase by 250-90 = 160

with Overhead cost = 40

Net budget change = 250-120 = 130 increase in budget

So cost of project = 1550+130 = 1680

Overhead cost = 60

Net Budget change = 250 - 180 = 70

So cost of project = 1550+70=1630

so in all the cases the crashing will not lead to any reduction in budget in case of crashing

In all the above case, Least-cost project = 1550

Activities Crashed Time Crashed Cost Crash Cost Per Day A 3 500 166.7 B 1 325 325.0 C 4 550 137.5 D 3 250 83.3

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