Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Question
Normal
Time
Problem 1
You are the manager of a project to improve a billing process at your firm. The following table
contains the data you will need to conduct crashing of the project duration. Indirect costs are $1,600
per week, and penalty costs are $1,200 per week after Week 12.
Activity
Immediate
Predecessor(s)
Crash Time
(weeks)
Normal
(Direct) Cost
Crash
Cost
(weeks)
($)
($)
A
4
1
5,000
8,000
B
5
2
8,000
11,000
C
A
1
1
4,000
4,000
Ꭰ
B
6
3
6,000
12,000
E
B, C
7
6
4,000
7,000
F
Ꭰ
7
6
4,000
7,000
What is the optimum choice for project duration?
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Transcribed Image Text:Normal Time Problem 1 You are the manager of a project to improve a billing process at your firm. The following table contains the data you will need to conduct crashing of the project duration. Indirect costs are $1,600 per week, and penalty costs are $1,200 per week after Week 12. Activity Immediate Predecessor(s) Crash Time (weeks) Normal (Direct) Cost Crash Cost (weeks) ($) ($) A 4 1 5,000 8,000 B 5 2 8,000 11,000 C A 1 1 4,000 4,000 Ꭰ B 6 3 6,000 12,000 E B, C 7 6 4,000 7,000 F Ꭰ 7 6 4,000 7,000 What is the optimum choice for project duration?
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