b. Annie will save $70 for every hour she can reduce from her plan. Annie has de

Question

b. Annie will save $70 for every hour she can reduce from her plan. Annie has decided to crash her project and use the money she saves to purchase a larger gift for Gwendolyn. Which activity should she crash first? c. Given the activity crashed in Part b, what is the next activity that Annie should crash to further profitably reduce the project? If more than one task exists that can profitably reduce the project, crash the most profitable task. d. Given the activities crashed in Parts b and c, what is the next activity that Annie should crash to further profitably reduce the project? If more than one task remains that will profitably reduce the project, crash the most profitable task. None

Explanation / Answer

a) The time associated with the guest list

Normal time = 6 hours

Crash time = 3 hours

Normal cost = $170

Crash Cost = $290

So, cost slope or the crash cost per hour = (290-170)/(6-3)= 120/3= $40

b)

The paths

A-D-E is the longest path = 6+7+8= 21 hours

The minimum crash cost slope for the activity is D i.e $35 so the D task should be crashed first.

c) Next least cost slope element is A having $40 so the next crash will be done in activity A

d)

D should be twice crashed then A crashed 3 times

If the question asks after A which needs to be crashed then it is F otherwise you try the answer A as it is crashed 3 times continuously as the least cost and in the critical path

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Activity Normal Time Crash time Normal Cost Crash Cost Cost Slope A 6 3 $170 $290 $40 B 3 1 $100 $195 $47.50 C 8 5 $300 $360 $20 D 5 3 $200 $270 $35 E 7 6 $270 $340 $70 F 8 5 $250 $370 $40

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