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IS-7 - OM 335 Bagchi Individual Homework-7 Name SOLUTION...

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OM 335 Bagchi Name: SOLUTION Individual Homework-7 Office Automation, Inc., has developed a proposal for introducing a new computerized office system that will improve word processing and interoffice communication for a particular company. Contained in the proposal is a list of activities that must be accomplished in order to complete the new office system project. Information about the activities is shown below. Times are in weeks, and costs are in thousands of dollars. Remember that normal time corresponds to normal cost and crash time corresponds to crash cost. As an example, it costs $30,000 to complete activity A in 10 weeks and $70,000 to complete activity A in 8 weeks. Assume a linear relationship between activity time and activity cost. As an example, the weekly crash cost (= what it costs to speed up activity A by one week) for activity A is $20,000. Normal Crash Normal Crash Activity Description Predecessors Time Time Cost Cost A Plan needs - 10 8 30 70 B Order equipment A 8 6 120 150 C Install equipment B 10 7 100 160 D Set up training lab A 7 6 40 50 E Conduct training course D 10 8 50 75 F Test system C, E 3 3 60 - (a) Draw the network diagram for the project assuming normal activity times.
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