Use the information contained below to compress one time unit per move using the least cost method. Reduce the schedule until you reach the crash point of the network. For each move, record which activity was crashed, the total direct cost, total indirect cost, and total project cost. Assume the total indirect cost for the project is $1,000 and there is a savings of $60 per time unit reduced. a) What is the optimum cost-time schedule for the project? b) What is the total direct cost, total indirect cost, and total project cost at the optimum cost-time schedule for the project? c) Plot the project cost-duration graph for the project showing the three different types of costs. Note: The correct normal project duration and total direct cost are provided. WORK MUST BE DONE IN MICROSOFT EXCEL (WITH FORMULAS AND EXPLANATION, NOT BY HAND

Use the information contained below to compress one time unit per move using the least cost method. Reduce the schedule until you reach the crash point of the network. For each move, record which activity was crashed, the total direct cost, total indirect cost, and total project cost. Assume the total indirect cost for the project is $1,000 and there is a savings of $60 per time unit reduced. a) What is the optimum cost-time schedule for the project? b) What is the total direct cost, total indirect cost, and total project cost at the optimum cost-time schedule for the project? c) Plot the project cost-duration graph for the project showing the three different types of costs. Note: The correct normal project duration and total direct cost are provided. WORK MUST BE DONE IN MICROSOFT EXCEL (WITH FORMULAS AND EXPLANATION, NOT BY HAND

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section: Chapter Questions

Problem 56P

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