Reference no: EM13918465
Case Problem R. C. COLEMAN
R. C. Coleman distributes a variety of food products that are sold through grocery store and supermarket outlets. The company receives orders directly from the individual outlets, with a typical order requesting the delivery of several cases of anywhere from 20 to 50 different products. Under the company's current warehouse operation, warehouse clerks dispatch order-picking personnel to fill each order and have the goods moved to the warehouse ship- ping area. Because of the high labor costs and relatively low productivity of hand order- picking, management has decided to automate the warehouse operation by installing a computer-controlled order-picking system along with a conveyor system for moving goods from storage to the warehouse shipping area.
R. C. Coleman's director of material management has been named the project manager in charge of the automated warehouse system. After consulting with members of the engi- neering staff and warehouse management personnel, the director compiled a list of activi- ties associated with the project. The optimistic, most probable, and pessimistic times (in weeks) have also been provided for each activity.
|
Activity
|
Description
|
Immediate Predecessor
|
|
A
|
Determine equipment needs
|
-
|
|
B
|
Obtain vendor proposals
|
-
|
|
C
|
Select vendor
|
A, B
|
|
D
|
Order system
|
C
|
|
E
|
Design new warehouse layout
|
C
|
|
F
|
Design warehouse
|
E
|
|
G
|
Design computer interface
|
C
|
|
H
|
Interface computer
|
D, F, G
|
|
I
|
Install system
|
D, F
|
|
J
|
Train system operators
|
H
|
|
K
|
Test system
|
I, J
|
|
Activity
A
|
Optimistic
4
|
Most Probable
6
|
Pessimistic
8
|
|
B
|
6
|
8
|
16
|
|
C
|
2
|
4
|
6
|
|
D
|
8
|
10
|
24
|
|
E
|
7
|
10
|
13
|
|
F
|
4
|
6
|
8
|
|
G
|
4
|
6
|
20
|
|
H
|
4
|
6
|
8
|
|
I
|
4
|
6
|
14
|
|
J
|
3
|
4
|
5
|
|
K
|
2
|
4
|
6
|
Managerial Report
Develop a report that presents the activity schedule and expected project completion time for the warehouse expansion project. Include a project network in the report. In addition, take into consideration the following issues:
1. R. C. Coleman's top management established a required 40-week completion time for the project. Can this completion time be achieved? Include probability informa- tion in your discussion. What recommendations do you have if the 40-week completion time is required?
2. Suppose that management requests that activity times be shortened to provide an 80% chance of meeting the 40-week completion time. If the variance in the project completion time is the same as you found in part (1), how much should the expected project completion time be shortened to achieve the goal of an 80% chance of completion within 40 weeks?
3. Using the expected activity times as the normal times and the following crashing information, determine the activity crashing decisions and revised activity schedule for the warehouse expansion project:
|
Activity
|
Crashed Activity Time (weeks)
|
Cost ($)
Normal Crashed
|
|
A
|
4
|
1,000
|
1,900
|
|
B
|
7
|
1,000
|
1,800
|
|
C
|
2
|
1,500
|
2,700
|
|
D
|
8
|
2,000
|
3,200
|
|
E
|
7
|
5,000
|
8,000
|
|
F
|
4
|
3,000
|
4,100
|
|
G
|
5
|
8,000
|
10,250
|
|
H
|
4
|
5,000
|
6,400
|
|
I
|
4
|
10,000
|
12,400
|
|
J
|
3
|
4,000
|
4,400
|
|
K
|
3
|
5,000
|
5,500
|
|
Diverse group of native american indians
: The Iroquois tribe is a diverse group of Native American Indians joined through marriage and adoption to create several generations of a dominating nation.
|
|
Major forms of reciprocity found in both foraging
: Reciprocity is a means of receiving something in exchange for providing something. The major forms of reciprocity in the foraging society operate within an immediate return system in most cases (Woodburn, 1988). The three types of reciprocal excha..
|
|
Discuss five types of visual aids
: Discuss five types of visual Aids. Explain the strategies or the does and don'ts that a speaker needs to be aware of while using visual aids.
|
|
Project costs of capital for new ventures with betas
: CAPM and Cost of Capital. Suppose the Treasury bill rate is 4% and the market risk premium is 7%. (LO12-3) a. What are the project costs of capital for new ventures with betas of .75 and 1.75? b. Which of the following capital investments have positi..
|
|
Find activity crashing decision and revise activity schedule
: Using the expected activity times as the normal times and the following crashing information, determine the activity crashing decisions and revised activity schedule for the warehouse expansion project.
|
|
Initial fixed asset investment-zero salvage value-fixed cost
: Consider a three-year project with the following information: initial fixed asset investment = $875,000; straight-line depreciation to zero over the five-year life; zero salvage value; price = $34.25; variable costs = $22.65; fixed costs = $211,000; ..
|
|
The qualifications of employee-its effect on labour turnover
: The main objective of this study was to investigate the factors that contribute to high staff turnover in the cleaning services industry.
|
|
Correlation between bride wealth
: Bride wealth in other cultures is mainly the responsibility of the man to provide a portion of his wealth and or his patrilineal wealth as a contribution to his future wife's family for their loss of a working member of the tribe (Nowak & Laird, 2..
|
|
Journal entries
: what are the journal entries for this problem?
|