Question: Hello, I am working on the same problem that is explained here: https://www.coursehero.com/tutors-problems/Operations-Management/39893772-The-following-table-refers-to-a-building-project-Please/. I am working on the section that asks: Assume the overhead costs
Hello, I am working on the same problem that is explained here: https://www.coursehero.com/tutors-problems/Operations-Management/39893772-The-following-table-refers-to-a-building-project-Please/. I am working on the section that asks: "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." The example shows a crashing strategy that reduces the critical path from a 30 month duration to a 20-month duration. However, based on the question, no penalties are had after 25 months which means that the crashing strategy could be reduced to only a 25-month duration and by my calculations there would be a net benefit of $63,500 if I only crash critical path F twice, critical path E twice and critical path A once. I don't understand why I would need to crash beyond 25 months when the answer says there is no benefit to do so though it mention going to 20-months as the optimal crashing strategy. Thanks so much in advance!
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