A Company Has Developed a Project Using CPM but Is

question 21

Essay

A company has developed a project using CPM but is interested in accelerating it if possible. The project has the following activities, durations in weeks), costs, and precedence relationships:
$\begin{array}{cc|cc|cc}\text { Immediate } && \text { Present } && \text { Accelerated }\\\text { Activity } & \text { Predecessors } & \text { Duration } & \text { Cost } & \text { Duration } & \text { Cost } \\\hline \text { a } & \text { none } & 3 & \$ 100 & 2 & \$ 250 \\\text { b } & \text { a } & 4 & \$ 50 & 3.5 & \$ 150 \\\text { c } & \text { a } & 5 & \$ 250 & 4 & \$ 450 \\\text { d } & \text { none } & 3 & \$ 100 & 3 & \ldots \\\text { e } & \text { d } & 6 & \$ 100 & 5 & \$ 175 \\\text { f } & \text { b,c,e } & 7 & \$ 300 & 5 & \$ 600\end{array}$
a. How many paths are in the network?
b. What is the earliest finish EF) time for activity f?
c. What is the slack in weeks for activity "c"?
d. What is the critical path?
e. What is the duration of the critical path in weeks
f. What activity should be crashed first to accelerate the project
g. What is the final duration of the fully crashed project
h. What is the total crashing cost for the project?

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Definitions:

Transaction

An agreement or exchange between two parties that involves the transfer of goods, services, or funds.

Multi-Step Income Statement

An income statement that separates operating activities from non-operating ones, showing multiple levels of income or profit.

Subtotal Amounts

Intermediate sums calculated by adding together certain items, typically within a larger calculation or accounting process.

Trial Balance

An accounting report that lists the balances of all ledgers accounts in two columns, debits and credits, to ensure that the total debits equal total credits.