Question: The 2 1 st Century Studios is about to begin the production of its most important ( and most expensive ) movie of the year.

The 21st Century Studios is about to begin the production of its most important
(and most expensive) movie of the year. The movies producer, Dusty Hoffmer, has
decided to use CPM to help plan and control this key project. He has identified the
eight major activities (labeled A, B,..., H) required to produce the movie. Their
precedence relationships are shown in the project network below.J
I
A
B D
C
E
F
G
HStart Finish
Dusty now has learned that another studio also will be coming out with a blockbuster
movie during the middle of the upcoming summer, just when his movie was to be re-
leased. This would be very unfortunate timing. Therefore, he and the top management
of 21st Century Studios have concluded that they must accelerate production of their
movie and bring it out at the beginning of the summer (16 weeks from now) to estab-
lish it as THE movie of the year. Although this will require substantially increasing an
already huge budget, management feels that this will pay off in much larger box office
earnings both nationally and internationally. Dusty now wants to determine the least
costly way of meeting the new deadline 16 weeks hence. Using the CPM method of
time-cost trade-offs, he has obtained the cost and timing information as given in the
table below for activities the activities, where J and I can not be crashed.
Activity Normal Time Crash Time Normal Cost Crash Cost
A 5 weeks 3 weeks $20 million $30 million
B 3 weeks 2 weeks $10 million $20 million
C 4 weeks 2 weeks $16 million $24 million
D 6 weeks 3 week $25 million $43 million
E 5 weeks 4 weeks $22 million $30 million
F 7 weeks 4 weeks $30 million $48 million
G 9 weeks 5 weeks $25 million $45 million
H 8 weeks 6 weeks $30 million $44 million
I 3 weeks N/A N/A N/A
J 3 weeks N/A N/A N/A
(a) Run the critical path method algorithm to determine which activities should be
crashed and by how much to achieve the deadline. Give the final xj for each
activity (by filling in the Times Crashed column) and calculate the final Z (total
amount spent crashing) value.
(b) Formulate a linear programming model for the problem.

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