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Cost-Duration trade-off: Fill in missing data regarding slope and maximum crash

ID: 460011 • Letter: C

Question

Cost-Duration trade-off:

Fill in missing data regarding slope and maximum crash time into the table below based on given information.

If you should reduce the duration of this project, which activity would you start with? Explain.

Activity ID

Slope

Maximum Crash Time

Direct costs

Normal

Crash

Time

Cost (USD)

Time

Cost (USD)

A

3

50

2

70

B

6

80

4

160

C

10

60

9

90

D

6

70

6

70

E

11

50

7

150

Activity ID

Slope

Maximum Crash Time

Direct costs

Normal

Crash

Time

Cost (USD)

Time

Cost (USD)

A

3

50

2

70

B

6

80

4

160

C

10

60

9

90

D

6

70

6

70

E

11

50

7

150

Explanation / Answer

Example slope for A=(70-50)/(3-2)=20

for B=(160-80)/(6-4)=40 and similarly for others

Activity ID Slope Max Crash Time Direct Cost Normal Crash Time Cost Time Cost A 20 1 3 50 2 70 B 40 2 6 80 4 160 C 30 1 10 60 9 90 D 0 0 6 70 6 70 E 25 4 11 50 7 150 Slope= (Crash cost-Normal Cost)/(Normal time- crash time) Max Crash time=Normal Time-Crash time Least slope is that of Activity A hence it will be crashed first with slope it means the increase in cost in per unit crashing time If we crash activity A first it will cost the least of all the activities