A Hatmaker, Fresh Off a Very Successful Showing at Lidzapalooza

question 31

Essay

A hatmaker, fresh off a very successful showing at Lidzapalooza is excited about the prospects of providing the finest chapeaus to meet the needs of his energized customer base in the coming year. He and his space designer have identified seven activities that are necessary to expand his small shop. For the sake of simplicity, and to avoid giving away any trade secrets, the activities have been identified by letters A-G. The activities, their time estimates, and the precedence requirements structure are listed in the table immediately below. Use this table to answer the following question.
$$\begin{array} { | c | c | c | } \hline \text { Activity } & \text { Predecessors } & \text { Time (weeks) } \\\hline \text { A } & - & 7 \\\hline \text { B } & \text { A } & 6 \\\hline \text { C } & \text { A } & 10 \\\hline \text { D } & \text { C } & 12 \\\hline \text { E } & \text { B, C } & 5 \\\hline \text { F } & \text { D, E } & 11 \\\hline \text { G } & \text { F } & 8 \\\hline\end{array}$$ Refer to the scenario above. What are the earliest and latest start and finish times for all of these activities?

---

Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overhead, which are incurred to convert raw materials into finished products.

FIFO Method

An inventory valuation method that assumes the first items placed in inventory are the first sold, standing for "first in, first out."

Process Costing

An accounting method that accumulates direct and indirect costs of a continuous production process and assigns them to individual units of output.

Conversion Cost

The combination of labor and manufacturing overhead costs required to convert raw materials into finished goods.