the information contained in the tables below to compress one time unit per move
ID: 431475 • Letter: T
Question
the information contained in the tables below to compress one time unit per move using the schedule until you reach the crash point of the network. least cost method. Reduce the ActivityCrash cost Maximum Slope) Crash Time Normal time Normal cost $150 200 250 200 250 200 250 300 100 1 60 30 20 602 200 Total direct normal costs The Indirect costs for each duration are $1,500 for 17 weeks, $1450 for 16 weeks. $1.400 for 15 weeks, $1350 for 4 weeks, $1.300 13 weeks, $1250 for 12 weeks, $1200 for 11 weeks, and $1150 for 10 weeksExplanation / Answer
Th critical path is ABDHI with a duration of 17 weeks.
The first activity to be crashed will be B for 1 week. It will raise the cost by 100. The activity is chosen because it has the lowest crash cost per day.
Total cost = 2000+100+ 1450 = 3550
The next activity to be crashed is D at a cost of 40, which has lowest crash cost among the options
Total cost = 2000+100+40+1400 = 3540
Next activity to b crashed will be D foe one day which will increase the direct cost to 1 day.
Total cost = 2000+100+40+40+ 1350= 3530
At this point, there are three critical paths viz. ABDHI, ACEHI and ABFGI, all with a duration of 14 weeks. For further crashing, the G and H can be crashed for 1 week each, making the project duration 13 weeks and costing the company a total of ( 20+60) = 80.
The total cost in this case = 2000+100+40+40+60+20 +1300 =3560
This is the point of change where any further crashing will only increase the cost, as more activites will have to be crashed and the costs saved as indirect expenses will be less than the cost of crashing.
Hence the optimum cost is 3530 with a duration of 14 weeks.
Crash point - To obtain the crash point, more activities will be crashed
Next F and H can be crashed for one week each, making the project duration 12 weeks. the cost is
3560-50+90 =3600
Crashing B and C each by 2 weeks the project duration will come down to 10 weeks at additional cost of 100x2+60x2 =320
Cost now is 3600-50+320 = 3870
Last activity to be crashed will be I by 1 week ( cost involved is 200), and there is no more scope of crashing left
The cost is 3870+200 = 4070 ( assuming that the indirect cost at week 9 is also same as week 10)
The crash point = 9 weeks and the cost is 4070.
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