National Oil Company (NATOCO)must Plan the Shutdown of Its Houston

question 4

Essay

National Oil Company (NATOCO)must plan the shutdown of its Houston refinery for routine preventive maintenance.Each hour of downtime is lost production time and is very costly,so NATOCO wants the maintenance project completed in 22 hours.The PERT network below shows the precedence relationships of the activities involved in the project.The table gives the activity times and costs under normal operations and maximum crashing. ​
NATOCO wants to know the minimum cost of completing the maintenance project within the 22-hour period.Formulate and solve a linear program that will yield this information.​ ​

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Definitions:

Excess Capacity

Excess capacity refers to a situation where a company is operating below its maximum output level, indicating that it can produce more with the current resources if there is higher demand.

Expansionary Fiscal Policy

To fight recessions, the federal government lowers taxes and/or raises spending.

Government Spending

Expenditures made by the government of a country on collective needs and wants such as infrastructure, public safety, education, and healthcare.

Public Debt

Money that is owed by a government to creditors within the country or externally, arising from borrowing to finance expenditures exceeding tax revenues.