Development of a new deluxe version of a particular


Question: Development of a new deluxe version of a particular software product is being considered. The activities necessary for the completion of this project are listed in the table below along with their costs and completion times in weeks.

Activity

Normal Time

Crash Time

Normal Cost

Crash Cost

Immediate Predecessor

A

4

3

2,000

2,600

-

B

2

1

2,200

2,800

A

C

8

8

500

500

A

D

8

4

2,300

2,600

A

E

6

3

900

1,200

B, D

F

3

2

3,000

4,200

C, E

G

4

2

1,400

2,000

F

a. What is the project expected completion date?

b. What is the total cost required for completing this project on normal time?

c. If you wish to reduce the time required to complete this project by 1 week, which activity should be crashed, and how much will this increase the total cost?

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Operation Management: Development of a new deluxe version of a particular
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