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: Normal Crash Normal Activity Time (weeks) Time (weeks) Cost ABCDEFG 4 2 3 8 6 3 4 3 1 3 4 3 2 2 $2,100 $2,300 $600 $2,400 $800 $3,400 $1,400 Total Cost with Crashing Immediate Predecessor(s) $2,750 $2,900 $600 $2,680 $1,100 $4,600 $1,900 a) Based on the given information regarding the activities for the project, the project length b) The total cost required for completing this project on normal time = $ 13000. | | A B C D, E = 16 weeks. 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 $ 70. 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) = $ 2500

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 21P
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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:
Normal
Crash
Normal
Activity Time (weeks) Time (weeks) Cost
ABCDEFG
4
2
3
8
6
3
4
3
1
3
4
3
2
2
$2,100
$2,300
$600
$2,400
$800
$3,400
$1,400
Total Cost
with
Crashing Immediate Predecessor(s)
$2,750
$2,900
$600
$2,680
$1,100
$4,600
$1,900
a) Based on the given information regarding the activities for the project, the project length
b) The total cost required for completing this project on normal time = $ 13000.
| |
A
B
C
D, E
= 16 weeks.
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 $ 70.
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) = $ 2500
Transcribed Image Text: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: Normal Crash Normal Activity Time (weeks) Time (weeks) Cost ABCDEFG 4 2 3 8 6 3 4 3 1 3 4 3 2 2 $2,100 $2,300 $600 $2,400 $800 $3,400 $1,400 Total Cost with Crashing Immediate Predecessor(s) $2,750 $2,900 $600 $2,680 $1,100 $4,600 $1,900 a) Based on the given information regarding the activities for the project, the project length b) The total cost required for completing this project on normal time = $ 13000. | | A B C D, E = 16 weeks. 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 $ 70. 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) = $ 2500
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