You Have Collected the Data for a Time-Cost CPM Scheduling

question 50

Multiple Choice

You have collected the data for a Time-Cost CPM Scheduling model analysis.The time is in days and the project "direct costs" are given below. $$\begin{array} { | l | l | l | l | l | l | } \hline & \text { Immediate } & \text { Normal } & \text { Crash } & \text { Normal } & \text { Crash } \\\hline \text { Activity } & \text { Immediate } & \text { Time } & \text { Time } & \text { Cost (Direct) } & \text { Cost (Direct) } \\\hline \text { A } & \text { None } & 3 & 2 & \$ 300 & \$ 400 \\\hline \text { B } & \text { A } & 3 & 3 & \$ 100 & \$ 100 \\\hline \text { C } & \text { A } & 1 & 1 & \$ 200 & \$ 200 \\\hline \text { D } & \text { B and C } & 3 & 2 & \$ 400 & \$ 550 \\\hline \text { E } & \text { D } & 2 & 1 & \$ 500 & \$ 900 \\\hline \text { F } & \text { E } & 3 & 3 & \$ 200 & \$ 200 \\\hline \text { G } & \text { F } & 2 & 2 & \$ 100 & \$ 100 \\\hline\end{array}$$
The indirect costs for the project are determined on a daily duration basis.If the project lasts 16 days the total indirect costs are $400,15 days they will be $250,14 days they will be $200,and 13 days they will be $100.At what day do we achieve the lowest total project cost (i.e. ,direct plus indirect costs) ?

• A) 16 days
• B) 15 days
• C) 14 days
• D) 13 days
• E) 12 days

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Definitions:

Divisional Structure

An organizational structure where operations are divided into separate divisions, each focused on a particular product line, market area, or professional service.

Chief Executive

The highest-ranking officer in an organization, responsible for making major corporate decisions and managing the overall operations.

Consumer Goods

Products and services that are purchased or consumed by individuals or households for personal use.

Departmentalization

The process of dividing an organization into different departments or units, each of which specializes in a specific area of operation.