0
17kviews
Determine the minimum cost and optimum duration for the project.

Determine the minimum cost and optimum duration for the project. The data for each activity of the network is given in the following table.

Indirect cost = Rs. 800/- per day

Activity Normal Duration (days) Crash Duration (days) Normal Cost (Rs.) Crash Cost (Rs.)
1-2 7 4 10000 15100
1-3 9 6 7000 9400
2-3 5 2 7000 10000
2-4 6 4 12000 16000
3-4 6 4 9000 12000
1 Answer
1
843views
Activity Name Activity Normal Duration (days) Crash Duration (days) Normal Cost (Rs.) Crash Cost (Rs.) Cost Slope
A 10-20 2 2 1000 1000 0
B 10-30 7 3 500 900 100
C 20-30 6 3 300 420 40
D 20-40 5 4 200 250 50
E 30-40 0 0 0 0 0
F 30-50 9 4 600 900 60
G 40-60 11 6 600 1000 80
H 50-60 6 3 700 910 70

Cost Slope=Crash Cost-Normal CostNormal Time-Crash Time

Stage 1 : - All Normal

enter image description here

Critical path = 10-20-30-50-60 i.e. A-C-F-H

Project duration = 23 days.

Stage 2 : - All Crash

enter image description here

Critical path :-

1) 10-20-30-50-60 (A-C-F-H)

2) 10-20-40-60 (A-D-G)

Project duration = 12 days

Stage 3 :- Stage 1 + Crash C by 1 day

enter image description here

Critical paths :- 10-20-30-50-60 (A-C-F-H)

10-30-50-60 (B-F-H)

Stage 4 :- Stage 3 + Crash F by 4 days

enter image description here

All critical

Duration = 18 days

Stage 5 : - Stage 4 + Crash F by 1 day & Crash G by 1 day

enter image description here

All critical

Project duration = 17 days

Stage Description Duration Direct Cost Indirect Cost Addition Crash Cost Total
1 All Normal 23 3900 80×23=1840 - 5740
2 All Crash 12 5830 80×12=960 - 6340
3 Stage 1 + Crash C by 1 day 22 3900 80×22=1760 1×40=40 5700
4 Stage 3 + Crash F by 4 days 18 3900 80×18=1440 40+4×60=280 5620
5 Stage 4 + Crash,F by 1 day & Crash G by 1 day 17 3900 80×17=1360 280+1×60+1×80=420 5680

Optimum cost = Rs. 5620

Optimum duration = 18 days

Please log in to add an answer.