Question: Use the information contained below to compress one time unit per move using the least cost method. Assume the total indirect cost for the project

Use the information contained below to compress one time unit per move using the least cost method. Assume the total indirect cost for the project is $2,000 and there is a savings of $100 per time unit reduced. Calculate the total direct, indirect, and project costs for each duration. Plot these costs on a graph. What is the optimum cost-time schedule for the project?

Note: The correct normal project duration and total direct cost are provided.

Normal Normal Maximum Crash Cost Time (Slope) Crash Time Act. Cost A 2 200 50 4 1000 800 200 5 D 200 5 1000 100 3 800 40
Project duration 20 A B Direct cost 6,000 2x 4 1x Indirect cost 2,000 Total cost 8,000 4 D.

Normal Normal Maximum Crash Cost Time (Slope) Crash Time Act. Cost A 2 200 50 4 1000 800 200 5 D 200 5 1000 100 3 800 40 1000 40 1000 200 Project duration 20 A B Direct cost 6,000 2x 4 1x Indirect cost 2,000 Total cost 8,000 4 D.

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