MGT374H5 Chapter Notes - Chapter 3: Critical Path Method
Document Summary
Your company has just received an order for a specially designed electric motor. The contract states that if project is not completed 12 days from now, then starting on the 13th day, your firm will experience a penalty of per day. 100: what completion date do you recommend for the project? (hint: it will be better to incur the penalty cost, if the cost of reducing the duration of the project is greater than . ) The normal completion time for the project is 19 days. However, starting on the 13th day, the firm will experience a penalty of per day. Therefore, we want to reduce the project duration. We first compute the cost per day for crashing, listed in the table above. Crashable tasks: c, f, h (on critical path) First, crash h (the lowest daily cost for crashing activity: /day) We crash h by 2 days (maximum amount that h can be crashed).
