The table below contains data for the installation of new equipment in a manufacturing process for a steel corporation. Your company is responsible for the installation project. Indirect costs are $6,000 per week, and a penalty cost of $10,000 per week will be incurred by your company for every week the project is delayed beyond week 15. Activity Immediate Predecessor(s) Normal Time (weeks) Crash Time (weeks) Normal Cost ($) Crash Cost ($) A None 2 1 7,000 10,000 B None 2 2 3,000 3,000 C A 3 1 12,000 40,000 D B 3 2 12,000 28,000 E C 1 1 8,000 8,000 F  D, E 5 3 5,000 15,000 G E 3 2 9,000 18,000 H F, G 8 6 14,000 32,000 Construct a network diagram for the project. What are the project completion time and the total cost under normal conditions? What is the shortest time duration for this project regardless of cost? What is the resulting total cost?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter12: Queueing Models
Section: Chapter Questions
Problem 59P
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The table below contains data for the installation of new equipment in a manufacturing process for a steel corporation. Your company is responsible for the installation project. Indirect costs are $6,000 per week, and a penalty cost of $10,000 per week will be incurred by your company for every week the project is delayed beyond week 15.

Activity

Immediate

Predecessor(s)

Normal Time (weeks)

Crash Time (weeks)

Normal Cost ($)

Crash Cost ($)

A

None

2

1

7,000

10,000

B

None

2

2

3,000

3,000

C

A

3

1

12,000

40,000

D

B

3

2

12,000

28,000

E

C

1

1

8,000

8,000

F

 D, E

5

3

5,000

15,000

G

E

3

2

9,000

18,000

H

F, G

8

6

14,000

32,000

  1. Construct a network diagram for the project.
  2. What are the project completion time and the total cost under normal conditions?
  3. What is the shortest time duration for this project regardless of cost? What is the resulting total cost?
  4. What is the minimal total cost associated with completing the project in 16 weeks?
  5. What is the total time for the minimum-cost schedule? What is that minimum total cost?
  6. Show all work
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