Given the critical path below, calculate the following:
a. The crash cost per unit time savings for each activity.
b. The maximum total crash time savings and cost.
c. The maximum total time-savings with a $3000 budget.
Activity Normal Time Normal Cost Crash Duration Crash Cost
A 8 days $8,000 7 days $12,000
B 5 days $2,000 3 days $10,000
C 10 days $9,000 9 days $12,000
(a) A saves 1 day for $4000/day, B saves 2 days for $4000/day, C saves 1 day at $3000/day.
(b) Max time savings is A + B + C = 4 days for a total of $15,000
(c) 1 day could be crashed from C. This means maximum savings is 1 day.
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