Question: The following table has data regarding several activities associated with the implementation of a new delivery process for a new retail chain. The contract with
The following table has data regarding several activities associated with the implementation of a new delivery process for a new retail chain. The contract with the new retail chain states that starting on the 13th day from now, your firm will experience a penalty of $110 per day until the job is completed. Indirect project costs amount to $227 per day. The data on direct costs and activity precedent relationships are given in the table.
| Delivery Process Project Data | |||||
| Activity | Normal Time (Days) | Normal Cost Per Day | Crash Time (Days) | Crash Cost Per Day | Immediate Predecessor(s) |
| A | 4 | $1,004 | 3 | $1,232 | None |
| B | 7 | $1,411 | 4 | $2,032 | None |
| C | 5 | $2,020 | 4 | $2,707 | None |
| D | 6 | $1,263 | 5 | $1,472 | A |
| E | 3 | $915 | 2 | $1,166 | B |
| F | 11 | $2,517 | 6 | $3,757 | C |
| G | 4 | $812 | 3 | $1,431 | D, E |
| H | 3 | $394 | 1 | $500 | F, G |
To complete this assignment, answer the following questions. Begin by drawing the project network diagram. A start node and end node are suggested.
Questions
- What are the options? What is the cost of each option?
- What are the advantages and disadvantages of each option?
- What completion date would you recommend? Why?
- What is the total cost of your recommendation?
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