Please solve thoroughly :) with how you got each calcuation. The Laurenster Corp
ID: 3236134 • Letter: P
Question
Please solve thoroughly :) with how you got each calcuation.
The Laurenster Corporation has determined the client will pay them a $10,000 bonus if they complete the project in Problem 11-33 in 14 weeks or less. The associated normal times and costs as well as the crash times and costs are shown below. Considering the costs involved to crash the project, determine if the Laurenster Corporation should crash the project to 14 weeks to receive the bonus. The Laurenster Corporation needs to perform the following tasks in weeks. Determine the associated PERT network diagram and determine the probability that the project will be complete in 16 weeks or less.Explanation / Answer
activity normal time Crash time normal cost crash cost a 3 2 600 1200 b 6 4 1200 2400 c 5 2 1200 2400 d 4 3 1200 1800 e 7 6 1200 1800 f 7 4 1200 3000 g 5 1 2400 4800 h 5 2 1200 3000 i 5 3 1800 2400 j 2 2 300 300 k 4 4 300 300 l 3 3 300 300 Total normal cost = $ 12,900 Total crash cost =$23,700 The increase in the cost for crashing the project by 14 weeks = $10,800 Bonus received $10,000 Hence the bonus received is less than crash cost . Hence laurenster corporation should not crash the project.