Question

17b-3) Use this info for questions 1 through 5.  

Chuck’s Custom Boats (CCB) builds customer luxury yachts. CCB has landed a contract with a mysterious New York real estate developer, Mr. T. Relevant data on the project are shown below. The complication is that Mr. T wants delivery in 30 weeks or he will impose a penalty of $200 for each week his yacht is late. Determine the lowest cost plan for crashing this project.

Note: All numbers are in thousands, but keep them that way (i.e., don't enter the last three zeros).

1. What is the expected project duration before crashing any activities?

2. What is the cost of the third crash?

3. What is the cost of the seventh crash?

4. What is the total cost of all crashes that should be done to minimize costs?

5. How much should be spent on penalties?

Activity	Immediate Predecessor	Normal Time (weeks)	# Possible Crashes	Crash Cost Per Week
J	-	9	1	150
K	J	8	2	65
L	J	5	2	50
M	K	4	2	60
N	L	6	2	25
P	M, N	5	2	265
Q	P	8	2	40
Y	P	7	1	75
Z	Y	6	1	105

Answer 1