Requirements (labor hours) 720 960 1,200 1,440 Probability 0.2 0.4 0.3 0.1 Number of Crews 4 5 3.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Sanchez Trucking has been experiencing delays at its ware-
house operations. Management hired a consultant to find
out why service deliveries to local businesses have taken
longer than they should. The consultant narrowed down the
problem to the number of work crews loading and unload-
ing trucks. Each crew consists of six employees who work
as a team on a variety of tasks; each employee works a full
40 hours a week. However, costs are also a concern. The
consultant advised management that they could supplement
work crews with short-term employees, at a higher cost, to
cover unexpected needs on a weekly basis. Each work crew
permanently hired by Sanchez costs $3,200 per week in
wages and benefits, while a crew of short-term employees
costs $5,000 per week. Complicating the decision is the fact
that the weekly hourly requirements for work crews is uncer-
tain because of the volatility in the number of deliveries to be
made. Deliberating with management, the consultant arrived
at the following data:
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