Solved Problem 1

  1. Your company has just received an order from a good customer for a specially designed electric motor. The contract states that, starting on the 13th day from now, your firm will experience a penalty of $100 per day until the job is completed. Indirect project costs amount to $200 per day. The data on direct costs and activity precedence relationships are given in Table 7.2.

    MyLab Operations Management Video

    Table 7.2 Electric Motor Project Data

    Activity

    Normal Time (days)

    Normal Cost ($)

    Crash Time (days)

    Crash Cost ($)

    Immediate Predecessor(s)

    A

    4

    1,000

    3

    1,300

    None

    B

    7

    1,400

    4

    2,000

    None

    C

    5

    2,000

    4

    2,700

    None

    D

    6

    1,200

    5

    1,400

    A

    E

    3

       900

    2

    1,100

    B

    F

    11  

    2,500

    6

    3,750

    C

    G

    4

       800

    3

    1,450

    D, E

    H

    3

       300 ...

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