You are the manager of a project to improve a billing process atyour firm. Table 1 contains the data you will need to conduct a cost analysis of the project. Indirect costs are $1,600 per week, and penalty costs are $1,800 per week after week 12.
a. What is the minimum-cost schedule for this project?
b. What is the difference in total project costs between the earliest completion time of the project using "normal" times and the minimum-cost schedule jou derived in part (a)?
DATA FOR THE BILLING PROCESS PROJECT
|
Activity
|
Immediate Predecessor(s)
|
Normal Time (weeks)
|
Crash Time (weeks)
|
Normal Cost ($)
|
Crash Cost($)
|
|
A
|
-
|
4
|
1
|
5,000
|
8,000
|
|
B
|
-
|
5
|
3
|
8,000
|
10,000
|
|
C
|
A
|
1
|
1
|
4,000
|
4,000
|
|
D
|
B
|
6
|
3
|
6,000
|
12,000
|
|
E
|
B, C
|
7
|
6
|
4,000
|
7,000
|
|
F
|
D
|
7
|
6
|
4,000
|
7,000
|