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:

Eastman Kodak

A technology company primarily known for its photographic film products, historically significant in the photography industry.

International Harvester

International Harvester was a company specializing in agricultural machinery, construction equipment, and vehicles, known for its tractors and trucks.

Clayton Act

A U.S. antitrust law, enacted in 1914, aimed at preventing anticompetitive practices in their incipiency and protecting trade and commerce against unlawful restraint and monopoly.

Antitrust Violations

Activities that reduce or prevent competition, deemed illegal under antitrust laws designed to promote fair competition.