Question: ABC Co. was asked to complete a quality control project for their favorite client, XYZ Co. The activities, time requirements, and direct cost considerations are

ABC Co. was asked to complete a quality control project for their favorite client, XYZ Co. The activities, time requirements, and direct cost considerations are listed below. In addition, indirect costs/overhead are $2,000 per week. Because XYZ Co. is under time pressure to improve quality, there is a penalty of $3,000 per week for every week the project extends beyond 14 weeks.

a.) How long will the project take before crashing?

b.) What is the minimum cost schedule (time)?

c.) What is the minimum cost ($)?

ABC Co. was asked to complete a quality control

ABC Co. was asked to complete a quality control

Immediate Activity Predecessor(s) Normal Time Crash Time Normal Cost (NT) (CT) (NC) Crash Cost (CC) Available Crash Time (NT-CT) Crashing Cost per Week CC - NC NT CT A 2 B A 3 1 $4,000 $4,000 $8,000 $12,000 $5,000 $8,000 $16,000 $21,000 A 4 2 D B,C 6 3 E D 4 3 $4,000 $12,000 F D 1 1 $2,000 $2,000 Action Costs Total Paths + Net

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!