Crash Cost/week Max Crash Possible (weeks) A BC DE F G H JA Perform market surve
ID: 339036 • Letter: C
Question
Crash Cost/week Max Crash Possible (weeks) A BC DE F G H JA Perform market survey B Determine product specs $10,000 Earliest Start 03 39 9 9 14 14 21 23 Earliest Finish 3 9 5 15 1412 21 19 23 29 D Design user interface Latest Finish 39 9 21 1416 2121 23 29 F Code Module 2 Latest Start 03 7 15 9 13 14 16 21 23 Slack=LS-ES | 0 | 0 | 4 | 6 | 0 | 4 | 0 | 2 | 0 | 0 C Design architecture $1500 $2200 $2300 S2000 E Code Module 1 G Code Module 3 H Code Module 4 I Integrate modules J Testing, Fixing and Release 15. Given the project information above, which activity is the best candidate for being crashed? a. Activity D b. Activity F c. Activity E d. Activity G* e. Activity H 16. If annual demand is 48,000 units, orders are placed in quantities of 2000 units at a time, and the cost to place an order is $80, what is the annual ordering cost? a. $1,920* b. $3,840,000 c. $160,000 d. $80 e. $4,160 1 week B (2) 2 weeks D (2) 3 weeks 1 week E (4) 2 weeks F (2) 3 weeks E (2) 2 weeks 1 weekExplanation / Answer
15. It is to be noted that all activities on critical path have zero slack
Therefore , the critical path is A-B-E-G - I-J
Following are to be noted :
Activities A, I cannot be crashed
Out of balance activities , activity G has the lowest cost of crashing per day
Therefore , activity G is the best candidate for Crashing
16. Number of annual orders = Annual demand / Order quantity = 48000/ 2000 = 24
Cost of placing an order = $ 80
Annual ordering cost = Cost of placing an order x Number of annual orders = $80 x 24 = $1920