Table 2.12
-Using Table 2.12,if the project's normal earliest completion time is to be reduced by two weeks,what is the minimum additional cost that will be incurred in achieving this two-week reduction?
A)less than or equal to $1,000
B)greater than $1,000 but less than or equal to $1,500
C)greater than $1,500 but less than or equal to $2,000
D)greater than $2,000

Question

Table 2.12 
-Using Table 2.12,if the project's normal earliest completion time is to be reduced by two weeks,what is the minimum additional cost that will be incurred in achieving this two-week reduction?
A)less than or equal to $1,000 
B)greater than $1,000 but less than or equal to $1,500 
C)greater than $1,500 but less than or equal to $2,000 
D)greater than $2,000

Quizplus · Accepted Answer

To find out the minimum additional cost for reducing the earliest completion time by two weeks, we need to determine the critical path and the activities that lie on the critical path. From Table 2.12, the normal duration of the critical path is 40 weeks, and the normal cost is $32,000.

The crash cost for the critical path activities is also given in the table. The crash cost is the cost incurred when an activity is completed in its minimum possible time. We can find the crash time and the associated cost for each activity as follows:

Activity A: Crash time = 3 weeks, Crash cost = $6,000 
Activity B: Crash time = 4 weeks, Crash cost = $8,000 
Activity C: Crash time = 4 weeks, Crash cost = $6,000 
Activity D: Crash time = 2 weeks, Crash cost = $5,000 
Activity E: Crash time = 2 weeks, Crash cost = $1,000 
Activity F: Crash time = 1 week, Crash cost = $5,000

To reduce the earliest completion time by two weeks, we need to crash some activities on the critical path. The total crash cost incurred will depend on the activities that we choose to crash.

To reduce the earliest completion time by two weeks, we can crash activity D and activity E by 2 weeks each. This will reduce the duration of the critical path from 40 weeks to 36 weeks.

The total additional cost incurred will be the sum of the crash cost for activity D and activity E.

Total additional cost = Crash cost of activity D + Crash cost of activity E 
= $5,000 + $1,000 
= $6,000

Therefore, the minimum additional cost that will be incurred in achieving the two-week reduction is greater than $1,000 but less than or equal to $1,500. The best choice is B.

Table 2.12 -Using Table 2.12,if the Project's Normal Earliest Completion Time Is