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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:

Activity Normal Time (weeks) Crash Time (weeks) Normal Cost Total Cost with Crashing Immediate Predecessor(s)

A 4 3 $2,200 $2,900 -

B 2 1 $2,100 $2,800 -

C 3 3 $750 $750 -

D 8 4 $2,500 $2,820 A

E 6 3 $900 $1,350 B

F 3 2 $3,400 $4,800 C

G 4 2 $1,500 $1,900 D, E

a) Based on the given information regarding the activities for the? project, the project length? = 16 weeks.

?b) The total cost required for completing this project on normal time? = $13350.

?c) For reducing the duration of the project by one? week, the activity that should be crashed first is activity D.

The cost of the project based on the first activity selected for crashing will increase by $80.

?d) The maximum weeks by which the project can be reduced by crashing? = 7 weeks.

Total cost of crashing the project to minimum? (or maximum weeks? possible) = ?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92510703

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