Question: 2 . The following table refers to a building project. Activity Duration ( months ) Predecessors A 7 None B 1 0 None C 7

2. The following table refers to a building project.
Activity Duration
(months)
Predecessors
A 7 None
B 10 None
C 7 B
D 8 A
E 6 A
F 5 E
G 10 C, D, F
H 11 E
I 2 G,H
3
Draw the network diagram of the project (You can do this with MS Project, if you so desire. If
you choose to do so, please copy and paste the network diagram from MS Project. Please do not
send me the whole MS Project file. It is also OK if you draw the diagram by hand or any other
software. If you do so, please scan and include it in your submission)
a. Identify the critical path, its duration and the activity slacks.
Consider the additional Time/Cost trade-off data.
Activity Normal
Duration
(months)
Normal Cost
($)
Crash
Duration
(months)
Crash Cost
($)
A 77,000521,000
B 1010,000830,000
C 77,000521,000
D 88,000624,000
E 66,000418,000
F 55,000315,000
G 1010,000830,000
H 1111,000933,000
I 22,000 Cannot be
crashed
Cannot be
crashed
b. Assume the overhead costs for this project are $2,500/month. Also, a penalty of $10,000
is assessed for each month the project is delayed beyond month 25. What is the optimal
crashing strategy? What is the net benefit of the optimal crashing strategy? Please
describe your crashing strategy step-by-step.
c. What is the optimal project duration? What are the critical paths as a result of your
crashing?

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