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Time-Cost Tradeoff Time Project Cost t normal Normal Cost t 1 C 1 C 2 t 2
Time-Cost Tradeoff Examples Now let us consider a project with its network diagram given below where normal activity times are given in days. A 7 B 8 C 9 D 11 E 8 F 10 H 13 G 12 I 14 Start End

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TIME (DAYS) COST (\$) COST SLOPE ACTIVITY (1) NORMAL (2) CRASH (3) NORMAL (4) CRASH [(4) - (3)] / [(1) - (2)] A 7 6 600 750 150 B 8 6 750 900 75 C 9 7 900 1100 100 D 11 8 1100 1400 100 E 8 5 850 1200 116.67 F 10 7 1000 1300 100 G 12 10 1300 1500 100 H 13 11 1400 1500 50 I 14 10 1500 2000 125 Total \$9,400 Normal and Crash Times and Costs With normal activity times, the critical path algorithm can be performed to determine the critical path.
A 7 B 8 C 9 D 11 E 8 F 10 H 13 G 12 I 14 Start End 0 7 8 1 8 0 0 8 7 16 16 28 32 20 20 11 7 18 8 16 19 8 19 11 18 31 32 19 18 32 8 18 18 32 18 8 32 Since Jobs B , F , and I are on the critical path and Job B has the lowest cost slope of \$75/day, Job B should first be crashed by 1 day at an extra cost of \$75. The project network is revised as follows.

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A 7 B 7 C 9 D 11 E 8 F 10 H 13 G 12 I 14 Start End 0 7 7 0 7 0 0 7 7 16 16 28 31 19 19 10 7 18 7 15 18 7 18 10 18 31 31 18
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