Rose is in charge of the advertising program for Proctor & Gamble's new laundry detergent. She has defined the advertising program as a project with the following characteristics. The goal is to complete the project on time and within budget, or she may not have this job next year-the pressure is on!
$\begin{array}{|c|c|c|c|c|c|}
\hline\text { Activity } & \begin{array}{c}
\text { Immediate } \
\text { Predecessor(s) }
\end{array} & \begin{array}{c}
\text { Normal } \
\text { Time } \
\text { in weeks }
\end{array} & \begin{array}{c}
\text { Crash Time } \
\text { in weeks }
\end{array} & \text { Normal Cost } & \text { Crash Cost } \
\hline \text { A } & \text { None } & 2 & 2 & \$ 15,000 & \$ 15,000 \\hline \text { B } & \text { None } & 1 & 1 & \$ 12,000 & \$ 12,000 \
\hline \text { C } & \text { A, B } & 5 & 3 & \$ 18,000 & \$ 24,000 \
\hline \text { D } & \text { A, B } & 4 & 2 & \$ 12,000 & \$ 16,000 \
\hline \text { E } & \text { C, D } & 2 & 1 & \$ 22,000 & \$ 23,500 \
\hline \text { F } & \text { D } & 4 & 3 & \$ 32,000 & \$ 36,000 \
\hline \text { G } & \text { E, F } & 3 & 2 & \$ 19,000 & \$ 20,000 \
\hline
\end{array}$ Draw the project network in the space below if you want. BLANK SPACES
-The total minimum crash cost only for the project to achieve a two-week earlier completion time from the original project completion time is:
A) less than $1,000.
B) more than $1,000 but less than or equal to $2,000.
C) more than $2,000 but less than or equal to $3,000.
D) more than $3,000 but less than or equal to $4,000.

Question

Rose is in charge of the advertising program for Proctor & Gamble's new laundry detergent. She has defined the advertising program as a project with the following characteristics. The goal is to complete the project on time and within budget, or she may not have this job next year-the pressure is on!
 $\begin{array}{|c|c|c|c|c|c|}
\hline\text { Activity } & \begin{array}{c}
\text { Immediate } \
\text { Predecessor(s) }
\end{array} & \begin{array}{c}
\text { Normal } \
\text { Time } \
\text { in weeks }
\end{array} & \begin{array}{c}
\text { Crash Time } \
\text { in weeks }
\end{array} & \text { Normal Cost } & \text { Crash Cost } \
\hline \text { A } & \text { None } & 2 & 2 & \$ 15,000 & \$ 15,000 \\hline \text { B } & \text { None } & 1 & 1 & \$ 12,000 & \$ 12,000 \
\hline \text { C } & \text { A, B } & 5 & 3 & \$ 18,000 & \$ 24,000 \
\hline \text { D } & \text { A, B } & 4 & 2 & \$ 12,000 & \$ 16,000 \
\hline \text { E } & \text { C, D } & 2 & 1 & \$ 22,000 & \$ 23,500 \
\hline \text { F } & \text { D } & 4 & 3 & \$ 32,000 & \$ 36,000 \
\hline \text { G } & \text { E, F } & 3 & 2 & \$ 19,000 & \$ 20,000 \
\hline
\end{array}$ Draw the project network in the space below if you want. BLANK SPACES
-The total minimum crash cost only for the project to achieve a two-week earlier completion time from the original project completion time is:
A) less than $1,000.
B) more than $1,000 but less than or equal to $2,000.
C) more than $2,000 but less than or equal to $3,000.
D) more than $3,000 but less than or equal to $4,000.

Quizplus · Accepted Answer

To achieve a two-week earlier completion time, we need to crash the activities on the critical path. The critical path is A-C-E-G or A-D-F-G. Crashing C from 5 to 3 weeks costs $6,000, and crashing D from 4 to 2 weeks costs $4,000. The total crash cost is $10,000, but since we only need to crash by two weeks, we can choose the least expensive options: crash C by 1 week ($3,000) and D by 1 week ($2,000), totaling $5,000. However, to achieve exactly two weeks earlier, we can crash C by 2 weeks ($6,000) or D by 2 weeks ($4,000), totaling $4,000. Thus, the cost is more than $2,000 but less than or equal to $3,000.

Rose Is in Charge of the Advertising Program for Proctor