Question: Given the following PERT network for modeling a new home construction by the Bonanza Development company (activity times are given in weeks) K D FINISH

Given the following PERT network for modeling a

Given the following PERT network for modeling a new home construction by the Bonanza Development company (activity times are given in weeks) K D FINISH I E START F L B H ACTIVITY DURATION ACTIVITY DURATION A 6 G 10 B 8 H 5 1 I 3 3 J 1 E 3 K 5 F 4 L 3 a) What is the critical path and expected project completion time? b) Activity J is being performed by a subcontractor, Reliable Plumbers, who is going to be 5 weeks delayed. It will cost Bonanza $2000 per week if the project is not completed on time (within the critical path length). Reliable is charging $3000 for the plumbing activity. Bonanza has three options: Keep Reliable Plumbers Cancel the contract with Reliable Plumbers and hire another contractor, Local Plumbers Inc. Local Plumbers will take two weeks to complete activity J and will charge $7000. Bonanza can train its own employees who are currently performing activity E to do the work. This involves a two week training period as soon as activity E is done. It is expected it will take them three weeks to perform activity I. The cost of the training is $800 per week and the cost of them doing activity J is $1000 per week. Which alternative do you recommend? Explain? Given the following PERT network for modeling a new home construction by the Bonanza Development company (activity times are given in weeks) K D FINISH I E START F L B H ACTIVITY DURATION ACTIVITY DURATION A 6 G 10 B 8 H 5 1 I 3 3 J 1 E 3 K 5 F 4 L 3 a) What is the critical path and expected project completion time? b) Activity J is being performed by a subcontractor, Reliable Plumbers, who is going to be 5 weeks delayed. It will cost Bonanza $2000 per week if the project is not completed on time (within the critical path length). Reliable is charging $3000 for the plumbing activity. Bonanza has three options: Keep Reliable Plumbers Cancel the contract with Reliable Plumbers and hire another contractor, Local Plumbers Inc. Local Plumbers will take two weeks to complete activity J and will charge $7000. Bonanza can train its own employees who are currently performing activity E to do the work. This involves a two week training period as soon as activity E is done. It is expected it will take them three weeks to perform activity I. The cost of the training is $800 per week and the cost of them doing activity J is $1000 per week. Which alternative do you recommend? Explain

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