PROBLEM 1 Task Predecessor Normal time (days) Normal cost ($) Crash time (days) Crash cost ($) A - 6 300 6 - B A 8 400 6 600 C A 6 500 4 620 D B, C 8 400 6 480 E C 4 500 4 - F B 6 400 2 520 G F 4 500 2 540 H D, E 8 600 4 840 I G, H 4 400 2 800 Consider the project shown above. 1. Draw the network diagram, find the critical path and total duration of the project. a. Calculate the crash cost per week per activity. b. Calculate the total normal cost of the project. 2. Crash the project to 30 days and indicate: a. What activities were crashed and how many days each b. Total cost of the project crashed to 30 days 3. Continue crashing the project to 26 days and indicate: a. What activities were crashed and how many days b. Total cost of the project crashed to 26 days 4. Crash the project to its minimum duration (the fastest it can be completed) a. For the following paths indicate to what duration can each be crashed, and if they need to be fully crashed: Path A to G Path A to H b. Total duration of the project crashed to its minimum. c. Total cost to crash the project to its minimum duration 5. Management gives you the following overhead (Indirect) costs:

If the project is completed in normal duration, overhead cost is $3700 If the project is completed in 30 days, overhead cost is $3300 If the project is completed in 26 days, overhead cost is $3100 If the project is completed at its minimum duration, overhead cost is $2900 Calculate total cost per duration and define which will be the optimal duration of the project