Solved Problem 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 $200 per day. The data on direct costs and activity precedence relationships are given in Table 7.2.
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Table 7.2 Electric Motor Project Data
Activity
Normal Time (days)
Normal Cost ($)
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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