Calculate the crash cost-per-day


Assignment:

Given the information provided below (predecessors, normal time, normal cost, crash time and crash cost for an eight-activity (a to h) project) answer the questions (a) through (e) using this template.

Activity

Predecessor

Normal Time

Normal Cost

Crash Time

Crash Cost

Crash Cost/Day

a

-

5

$50

3

$150

 

b

-

4

40

2

200

 

c

b

7

70

6

160

 

d

a, c

2

20

1

50

 

e

a, c

3

30

-

-

 

f

b

8

80

5

290

 

g

d

5

50

4

100

 

h

e, f

6

60

3

180

 

(a). Create the network diagram in the application of your choice and then insert a screen shot of the diagram here. The diagram can be created easily in MS Word using the Insert Shapes function.

Identify the critical path of the network, the time, and cost of the normal level of activity for the project:

(b)Calculate the crash cost-per-day (all activities may be partially crashed). Enter your response to question 1(b) in the table provided below

(c). Find the optimal way of getting an 18-day delivery time. What is the projected cost? Once

(d). Find the optimal way of getting a 16-day delivery time. What is the project cost? Explain your results.

(e). Calculate the shortest delivery time for the project. What is the cost? Explain your results.

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Microeconomics: Calculate the crash cost-per-day
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