Problem #2 Suppose you are considering crashing a project. The projects network diagram (AON format) is shown below, along with the table identifying the critical activities and the crash cost for all tasks.

2.1 What is the projects critical path, and what is its length?

2.2 What is the normal cost of the project?

2.3 Crash the project (shorten the project duration) by 3 days. List the activities for the first, second, and third crashes and the total crash (additional) cost.

Optional, Bonus #2

In CLTBest Printing, Royals blue is a popular input with an annual demand of 50,000 gallons, an ordering cost of $36 per order, and a holding cost of $10 per unit per year; the economic order quantity is 600 gallons.

Hence during the year, they used 600 as the order quantity.

An audit of the costs revealed that the actual ordering cost was $75, and the actual holding cost was $5 per gallon per year. The correct economic order quantity would have been 1225 gallons.

How much did ABC save or lose due to incorrect cost information during the year?

Cost Information Normal Crashed Crash Cost per Day? = 1000/1 (4) B (4) Duration Activity (day) 4 B 4 C 6 E (7) 1,800 Total Cost Duration Total Cost No. of Days Available for (in $US) (day) (in $US) Crashing? $ 1,000 3 $ 2,000 =4-3 $ 3 $ 3.000 $ 2,500 3 $ 4.000 determine the rest $ 2,700 6 $ 6,500 yourself $ 2,400 6 $ 4.500 $ 3,500 3 $ 7.000 $ 2,400 1 $ 3,900 D 19) F (5) (3) 9 7 Owuo D E F G 5 3