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The Scott Corey accounting firm is installing a new computer system, and several things must be done to make sure the system works properly. The following table provides information about this project. Activity Immediate Predecessor Normal Time (Wks.) Crash Time (Wks.) Normal Cost ($) Crash Cost ($) Crash Cost/Week A -- 3 2 8,000 9,800 B -- 4 3 9,000 10,000 C A 6 4 12,000 15,000 D B 2 1 15,000 15,500 E A 5 3 5,000 8,700 F C 2 1 7,500 9,000 G D, E 4 2 8,000 9,400 H F, G 5 3 5,000 6,600 (a) Find and fill in the crash cost per week. (b) The critical path for this project is A-E-G-H and the completion time is 17 weeks. The managing partner of the accounting firm has decided that the system must be up and running in 16 weeks. Which activity should be crashed, and what is the total cost of crashing? (Assume that A-E-G-H remains the critical path after crashing)
Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..
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