What Is the Minimum Cost Completion Time for This Project

question 96

Essay

What is the minimum cost completion time for this project if the activities have normal and crash costs as indicated and there is a $1,000 fixed cost for each day on site plus a $500 penalty for each activity that is crashed? The crash costs represent the cost of a fully expedited activity.For example,reducing activity Y from 13 days to 12 days costs an extra $100 on top of the $500 expediting cost for a total cost of $2,600.Reducing Y from 13 days to 10 days costs an extra $300 on top of the $500 expediting cost,for a total activity cost of $2,800.
$\begin{array}{|l|l|l|l|l|l|}\hline&&\text { Normal } & \text {Normal }& \text {Crash}\\ \text { Activity} & \text { Predecessor } & \text {Time } & \text { Cost } & \text { Time } & \text { Crash Cost }\\ \hline\mathrm{ Z} & & 2 & \$ 2,000 & 2 & \$ 2,000 \\\hline \mathrm{Y} & & 13 & \$ 2,000 & 10 & \$ 2,300 \\\hline \mathrm{X} & & 19 & \$ 2,000 & 15 & \$ 3,000 \\\hline \mathrm{W} & \mathrm{Z} & 18 & \$ 2,000 & 15 & \$ 3,000 \\\hline \mathrm{V} & \mathrm{X} & 10 & \$ 2,000 & 9 & \$ 3,000 \\\hline \mathrm{U} & \mathrm{Y} & 13 & \$ 2,000 & 11 & \$ 3,000 \\\hline \mathrm{T} & \mathrm{W} & 18 & \$ 2,000 & 14 & \$ 4,000 \\\hline \mathrm{S} & \mathrm{V} & 4 & \$ 2,000 & 3 & \$ 3,000 \\\hline \mathrm{R} & \mathrm{U} & 6 & \$ 2,000 & 5 & \$ 3,000 \\\hline\mathrm{Q} & \mathrm{R}, \mathrm{S} & 15 & \$ 2,000 & 13 & \$ 3,000 \\\hline \mathrm{P} & T & 13 & \$ 2,000 & 12 & \$ 3,000 \\\hline \mathrm{N} & \mathrm{P}, \mathrm{Q} & 4 & \$ 2,000 & 4 & \$ 2,000\\\hline \end{array}$

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Definitions:

Open Road

Sometimes used metaphorically to refer to freedom or the lack of obstacles for actions or endeavors.

Market-Share Liability

A theory under which liability is shared among all firms that manufactured and distributed a particular product during a certain period of time. This theory of liability is used only when the specific source of the harmful product is unidentifiable.

Toxic Chemical

A substance that poses a risk to health or the environment due to its poisonous properties.

Water Supply

The provision and management of water resources for various uses, including domestic, agricultural, and industrial purposes.