Subject- Optimization Techniques

Q) The Stone River Textile Mill was inspected by OSHA and found to be in violation of a number of

safety regulations. The OSHA inspectors ordered the mill to alter some existing machinery to

make it safer (e.g., add safety guards); purchase some new machinery to replace older, dangerous

machinery; and relocate some machinery to make safer passages and unobstructed entrances

and exits. OSHA gave the mill only 8 weeks to make the changes; if the changes were not made

by then, the mill would be fined $100/week of late finishing.

Activity	Description	Normal duration (in weeks)	Normal cost (in $)	Crash Duration (in weeks)	Increment in cost ($) on per week reduction
1-2	Order new machinery	3	50	2	50
1-3	Determine safety changes	5	140	4	60
1-4	Receive Equipment	2	50	1	30
2-3	Hire new employees	5	100	2	40
3-5	Make changes in the existing machinery	4	100	2	70
2-5	Install new machinery	7	115	5	30
4-5	Conduct employee safety orientation	2	55	2	-----

(a) Determine the normal duration and total cost of the project. 

(b) Determine the project schedule and total cost of completing the project in 9 weeks. 

(c) Is it economical to compress the schedule beyond 9 weeks? Justify. 

(d) What is the minimum cost at which project can be completed? 

(e) What is the minimum duration of the project with the minimum cost obtained in part (d)?

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