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Using the data provided in the picture added Draw a network for the work package showing the activities, critical path and package duration. Assume the client wishes the package to be completed within 32 weeks. Calculate the most cost effective way of completing the package within this time, giving the cost increase associated with this crash sequence. You should start with the activity with the lowest cost per unit crash time and progress to the activity with the highest cost per unit crash time. Assume liquidated and ascertained damages apply at a rate of GBP 30,000 per week for completion later than the end of week 32. Balancing crash costs against damages costs, calculate the duration that gives the lowest total project cost.

Using the data provided in the picture added Draw a network for the work package showing the activities, critical path and package duration. Assume the client wishes the package to be completed within 32 weeks. Calculate the most cost effective way of completing the package within this time, giving the cost increase associated with this crash sequence. You should start with the activity with the lowest cost per unit crash time and progress to the activity with the highest cost per unit crash time. Assume liquidated and ascertained damages apply at a rate of GBP 30,000 per week for completion later than the end of week 32. Balancing crash costs against damages costs, calculate the duration that gives the lowest total project cost.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Using the data provided in the picture added

  1. Draw a network for the work package showing the activities, critical path and package duration.
  1. Assume the client wishes the package to be completed within 32 weeks. Calculate the most cost effective way of completing the package within this time, giving the cost increase associated with this crash sequence. You should start with the activity with the lowest cost per unit crash time and progress to the activity with the highest cost per unit crash time.
  2. Assume liquidated and ascertained damages apply at a rate of GBP 30,000 per week for completion later than the end of week 32. Balancing crash costs against damages costs, calculate the duration that gives the lowest total project cost.

 

Activity Normal duration (weeks) A-B A-C A-E B-D C-F C-I D-F E-F E-K F-G F-H G-I G-J H-J H-K I-M J-M K-M 1 6 2 2 8 2 2 3 3 10 3 8 2 2 2 10 6 3 Crash duration (weeks) 1 4 1 1 7 1 1 2 2 6 2 7 1 1 1 8 4 2 Normal cost (GBP) 20,000 20,000 10,000 100,000 30,000 60,000 100,000 70,000 150,000 80,000 50,000 40,000 50,000 10,000 150,000 100,000 60,000 20,000 Crash cost (GBP) 20,000 40,000 15,000 150,000 60,000 80,000 200,000 140,000 250,000 160,000 350,000 80,000 100,000 20,000 450,000 200,000 650,000 120,000
Transcribed Image Text:Activity Normal duration (weeks) A-B A-C A-E B-D C-F C-I D-F E-F E-K F-G F-H G-I G-J H-J H-K I-M J-M K-M 1 6 2 2 8 2 2 3 3 10 3 8 2 2 2 10 6 3 Crash duration (weeks) 1 4 1 1 7 1 1 2 2 6 2 7 1 1 1 8 4 2 Normal cost (GBP) 20,000 20,000 10,000 100,000 30,000 60,000 100,000 70,000 150,000 80,000 50,000 40,000 50,000 10,000 150,000 100,000 60,000 20,000 Crash cost (GBP) 20,000 40,000 15,000 150,000 60,000 80,000 200,000 140,000 250,000 160,000 350,000 80,000 100,000 20,000 450,000 200,000 650,000 120,000
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