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Problem : Development of a new deluxe version of a particular software product is being considered by Ravi Behara's software house. The indirect cost is $500 per week. The activities necessary for the completion of this project are listed in the following table

Activity Normal time (weeks) Normal cost Maximym Cash time (weeks( Crash cost per week ImmediatePredecessors

a 4 $2000 2 $300 -

b 2 $2200 1 $600 -

c 3 $200 0 - -

d 8 $2,300 2 $200 a

e 6 $900 3 $100 b

f 3 $3000 1 $1,200 c

g 4 $1,400 1 $600 d,e,f

a) What is the project completion time and the total cost required for completing this project on normal time?

b) If you wish to reduce the time required completing this project by 1 week, which activity should be crashed, and how much will this change the total cost?

c) If you wish to reduce the total cost to the minimum level, which activities should be crashed, and how much will this make the total cost?

d) What is the earliest time that the project can be completed by crashing the activities? How much will this make the total cost?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92759240

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