5) Given the critical path below, calculate the following a. The crash cost per
ID: 2698619 • Letter: 5
Question
5) Given the critical path below, calculate the following
a. The crash cost per unit time savings for each activity.
b. The maximum total crash time savings and cost.
c. The maximum total time-savings with a $3000 budget.
Activity
Normal Time
Normal Cost
Crash Duration
Crash Cost
A
8 days
$8,000
7 days
$12,000
B
5 days
$2,000
3 days
$10,000
C
10 days
$9,000
9 days
$12,000
Activity
Normal Time
Normal Cost
Crash Duration
Crash Cost
A
8 days
$8,000
7 days
$12,000
B
5 days
$2,000
3 days
$10,000
C
10 days
$9,000
9 days
$12,000
Explanation / Answer
a)cost crash per period=cc-nc/nt-ct
activity cost crash
A 4000
B 4000
C 3000
b)The maximum total crash time savings and cost.
NT-CT
activity NT-CT
A 1
B 2
C 1