Operations Management: Processes and Supply Chains, 12th Edition

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.

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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 ...