Rose Is in Charge of the Advertising Program for Proctor

question 37

Multiple Choice

Rose is in charge of the advertising program for Proctor & Gamble's new laundry detergent. She has defined the advertising program as a project with the following characteristics. The goal is to complete the project on time and within budget, or she may not have this job next year-the pressure is on!
$\begin{array}{|c|c|c|c|c|c|}\hline\text { Activity } & \begin{array}{c}\text { Immediate } \\\text { Predecessor(s) }\end{array} & \begin{array}{c}\text { Normal } \\\text { Time } \\\text { in weeks }\end{array} & \begin{array}{c}\text { Crash Time } \\\text { in weeks }\end{array} & \text { Normal Cost } & \text { Crash Cost } \\\hline \text { A } & \text { None } & 2 & 2 & \$ 15,000 & \$ 15,000 \\\hline \text { B } & \text { None } & 1 & 1 & \$ 12,000 & \$ 12,000 \\\hline \text { C } & \text { A, B } & 5 & 3 & \$ 18,000 & \$ 24,000 \\\hline \text { D } & \text { A, B } & 4 & 2 & \$ 12,000 & \$ 16,000 \\\hline \text { E } & \text { C, D } & 2 & 1 & \$ 22,000 & \$ 23,500 \\\hline \text { F } & \text { D } & 4 & 3 & \$ 32,000 & \$ 36,000 \\\hline \text { G } & \text { E, F } & 3 & 2 & \$ 19,000 & \$ 20,000 \\\hline\end{array}$ Draw the project network in the space below if you want. BLANK SPACES
-Which activity should one crash to complete the project two weeks earlier than the original project completion time to minimize total crash costs?

• A) Activity G by 1 week
• B) Activity G by 1 week and activity D by 1 week
• C) Activity D by 2 weeks
• D) Activity D by 1 week and activity F by 1 week

---

Definitions:

Transparency

The degree to which a company's actions are observable, understandable, and disclosed to the outside world, especially to investors.

Advertise

To announce or promote a product, service, or event publicly to encourage commercial interest.

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns.

Lock-Up Provisions

Lock-Up Provisions refer to contractual clauses that prevent insiders of a company from selling their shares for a certain period post an initial public offering (IPO).