Development of an update of a particular software product is being considered by

Question

Development of an update of a particular software product is being considered by a software house. Information on the activities necessary for the completion of this project is provided in the following table:

Activity

Immediate
Predecessors

Normal Time
(Weeks)

Crash Time
(Weeks)

Normal Cost

Crash Cost

A

--

6

1

$400

$1,000

B

--

3

1

$200

$300

C

--

4

4

$310

$310

D

A

6

5

$100

$300

E

B

4

2

$200

$300

F

C

3

2

$150

$180

G

D, E

2

1

$600

$800

Verify that the critical path using the normal time for each activity is A, D, G, and the minimum project duration in weeks is 6+6+2. Then answer the following question:  What is the minimum cost of reducing project duration by one week?

Activity

Immediate
Predecessors

Normal Time
(Weeks)

Crash Time
(Weeks)

Normal Cost

Crash Cost

A

--

6

1

$400

$1,000

B

--

3

1

$200

$300

C

--

4

4

$310

$310

D

A

6

5

$100

$300

E

B

4

2

$200

$300

F

C

3

2

$150

$180

G

D, E

2

1

$600

$800

Explanation / Answer

Min cost of reducing project duration by one week=$300

because D can be reduced to 5 weeks by using crash time.

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