answer start question no1

QUESTION 2 Reconsider the Electronic Toys Co. problem presented in previous Scenario 2. Sharon Lowe is concerned that there is a significant chance that the vitally important deadline of 57 days will not be met. Therefore, to make it virtually certain that the deadline will be met, she has decided to crash the project, using the CPM method of time-cost trade-offs to determine how to do this in the most economical way. Sharon now has gathered the data needed to apply this method, as given below. Normal Time Crash Time Normal Cost Crash Cost Activity B C D E F 12 days 23 days 15 days 27 days 18 days 6 days 9 days 18 days 12 days 21 days 14 days 4 days $210,000 $410,000 $290,000 $440,000 $350,000 $160,000 $270,000 $460,000 $320,000 $500,000 $410,000 $210,000 The normal times are the estimates of the means obtained from the original data in previous scenario. The mean critical path gives an estimate that the project will finish in 51 days. However, Sharon knows from the earlier analysis that some of the pessimistic estimates are far larger than the means, so the project duration might be considerably longer than 51 days. Therefore, to better ensure that the project will finish within 57 days, she has decided to require that the estimated project duration based on means (as used throughout the CPM analysis) must not exceed 47 days. Question: Use marginal cost analysis to determine the most economical way of reducing the length of this path to 47 days. QUESTION 1 Sharon Lowe, vice president for marketing for the Electronic Toys Company, is about to begin a project to design an advertising campaign for a new line of toys. She wants the project completed within 57 days in time to launch the advertising campaign at the beginning of the Christmas season. Sharon has identified the six activities (labelled A, B., F) needed to execute this project. Considering the order in which these activities need to occur, she also has constructed the following project network E - F START FINISH B Using the PERT three estimate approach, Sharon has obtained the following estimates of the duration of each activity. Optimistic Estimate Most Likely Estimate Pessimistic Estimate Activity A B D E F 12 days 15 days 12 days 18 days 12 days 2 days 12 days 21 days 15 days 27 days 18 days 5 days 12 days 39 days 18 days 36 days 24 days 14 days QUESTIONS: Find the estimate of the mean and variance of the duration of each activity. Find the mean critical path. Use the mean critical path to find the approximate probability that the advertising campaign will be ready to launch within 57 days