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Development of Version 2.0 of a particular accounting software product is being

ID: 353294 • Letter: D

Question

Development of Version 2.0 of a particular accounting software product is being considered by Jose Noguera's technology firm in Baton Rouge. The activities necessary for the completion of this project are listed in the following table:

NT stands for      Normal Time (weeks)     
CT stands for    Crash Time (weeks)     
NC stands for    Normal Cost     
CC stands for    Total Cost with Crashing     

The maximum weeks by which the project can be reduced by crashing is ________ and Total cost of crashing the project (for maximum number of weeks) is ________.

10, $2270

7, $2270

5, $2670

7, $1670

Activity      NT        CT         NC         CC               Immediate Predecessors A      4      3      $2,200      $2,800                   - B      2      1      $2,200      $3,000         - C      3      3      $500      $500            - D      8      4      $2,400      $2,720         A E      6      3      $900      $1,350         B F      3      2      $3,200      $4,400                  C G      4      2      $1,500      $2,100                  D, E

Explanation / Answer

Project can be shown using activity diagram as drawn below.

Critical Path for the project will be A -> D -> G and time for critical path is 16 days.

And by crashing the critical path it can be completed in 9 days. So total saving in days is 7 days.

However for calculating crashing cost –

Activity A,D,G need to be crashed along with only activity B, least cost required for crashing. Thus cost of crashing is 1670. Thus, Option D is correct Option.