A seven activity project has the activity durations (in weeks) and costs shown in the table
It is possible to speed up every one of the activities by paying a little more; for example, activity A has a regular duration of 7 weeks and regular cost of $2000, but for $3000 activity A can be finished in 5 weeks and for $2500 activity A can be finished in 6 weeks. In addition to the activity costs shown in the table, there is an additional daily fixed cost of $450. What is the least expensive project completion cost?
Activity
Predecessor Normal Duration
Normal Cost Crash Duration
Crash Cost
A -- 7 $2000 5 $3000
B -- 8 $1500 6 $2000
C A 12 $2500 10 $2900
D B 13 $3000 10 $4200
E B 15 $4000 12 $5500
F C, E 10 $3200 8 $4000
G D 7 $1800 6 $2200
What will be an ideal response?
Answer: The normal completion cost is $18,000 for activities and at a 33-day duration, it incurs an additional $14,850 cost for a total uncrashed cost of $32,850. Activities B and F are critical and their per day crash cost is lower than the fixed cost of $450, so the project duration can be reduced to 29 days. The reduced project cost is $32,350, of which $19,300 is activity cost and $13,050 is fixed cost.
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