The following table has data regarding several activities associated with the implementation of a new delivery process for a new retail chain. The contract with the new retail chain states that starting on the 13th day from now, your firm will experience a penalty of $110 per day until the job is completed. Indirect project costs amount to $227 per day. The data on direct costs and activity precedent relationships are given in the table.
Delivery Process Project Data
Activity Normal Time (Days) Normal Cost Per Day Crash Time (Days) Crash Cost Per Day Immediate Predecessor(s)
A 4 $1,004 3 $1,232 None
B 7 $1,411 4 $2,032 None
C 5 $2,020 4 $2,707 None
D 6 $1,263 5 $1,472 A
E 3 $915 2 $1,166 B
F 11 $2,517 6 $3,757 C
G 4 $812 3 $1,431 D, E
H 3 $394 1 $500 F, G
To complete this assignment, answer the following questions. Begin by drawing the project network diagram. A start node and end node are suggested.
What are the options? What is the cost of each option?
What are the advantages and disadvantages of each option?
What completion date would you recommend? Why?
What is the total cost of your recommendation?