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10) Bragg's Bakery is building a new automated bakery in downtown Omaha. Here are the activities that need to be completed to get the new bakery build and the equipment installed.
Activity
Predecessor
Normal Completion Time (Weeks)
Crash Completion Time (Weeks)
Crash (Expediting) Cost/Week
A
--
9
6
$3,000
B
8
5
$3,500
C
15
10
$4,000
D
B,C
3
$2,000
E
$2,500
F
D,E
2
1
$5,000
As with the other test problems, you must show your work to receive full credit.
a) What are the normal project completion time and the critical path?
b) What activity(ies) should be crashed to reduce the completion time found in a) by one week? What activity(ies) should be crashed if you want to reduce the completion time found in a) by six weeks?
c) Bragg's loses $3,500 in profit per week for every week the bakery is not completed. How many weeks will the project take if the bakery is willing to pay the crashing cost as long as it is economically the right decision?
d) What is the project completion time if all activities are crashed to their minimum Crash Time? Also, ignoring the $3,500 lost profit in c), what is the total additional cost incurred for crashing all of the activities to their minimum Crash Time compared to the Normal Times?
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