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Bob Summers, CEO of Summer Construction has the opportunity to bid on contract which pays $5500 upon completion, but contract calls for  late performance penalty of $140 per week for each week that project is delayed beyond eight weeks.

Activity Normal Time Normal Cost Crash Time Crash Cost Immediate Predecessors
A 1 $300 1 $300 -
B 3 $400 1 $470 A
C 2 $350 1 $550 A
D 5 $550 4 $675 A
E 4 $300 3 $375 C
F 2 $450 1 $500 C
G 7 $425 5 $525 C
H 4 $525 2 $625 B,E
I 3 $250 1 $330 D,F
J 1 $300 1 $300 H,G,I

A. Determine crash cost per week for each activity and record results in crash table in table. Determine the total normal costs for project?

B. Which activity would you suggest that Hank crash first, if any?

C. What project duration will minimize project cost?

D. Compute the maximum profit that Summers can attain for this project.

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M932856

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