Reference no: EM132074765
These costs reflect the company's direct costs for the material, equipment, and direct labor required to perform the activities. In addition, the company incurs indirect project costs such as supervision and other customary overhead costs, interest charges for capital tied up, and so forth. Michael estimates that these indirect costs run $5,000 per week. He wants to minimize the overall cost of the project. Therefore, to save some of these indirect costs, Michael concludes that he should shorten the project by doing some crashing to the extent that the crashing cost for each additional week saved is less than $5,000.
a. To prepare for analyzing the effect of crashing, find the earliest times, latest times, and slack for each activity when they are done in the normal way. Also identify the corresponding critical path(s) and project duration.
b. Use marginal cost analysis to determine which activities should be crashed and by how much to minimize the overall cost of the project. Under this plan, what is the duration and cost of each activity? How much money is saved by doing this crashing? E*
c. Now formulate a spreadsheet model that fits linear programming and repeatedly solve it to do part b by shortening the deadline one week at a time from the project duration found in part a.
What is the catheterization labs profit
: Name two financial measures used to judge the performance of investment centers that are not used to measure the financial performance of profit centers.
|
Research findings on the communication and business
: Research findings on the communication and business practice distinctions associated with a specific culture.
|
Planning the schedule for project
: The company's president, Michael Dean, is currently planning the schedule for this project. Michael has identified the five major activities
|
What is the component cost of debt
: Rollins Corporation is constructing its MCC schedule. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity.
|
Analyzing the effect of crashing
: To prepare for analyzing the effect of crashing, find the earliest times, latest times, and slack for each activity when they are done in the normal way.
|
E-business designdepth or breadthspeaking
: E-Business DesignDepth or breadthSpeaking about menus, what do you think is best: depth or breadth? And why? Give examples to justify your reasons.150 words
|
What is the role of banking institutions
: What is the role of banking institutions in international trade besides financing? What other institutions are available to facilitate trade?
|
Develop a leadership philosophy for leading innovation
: Despite these structural changes our company continues to lose market share - "Our competitors continue to provide more innovative solutions".
|
Calculate the difference in cash flow between the two firms
: The Rogers Corporation has a gross profit of $789,000 and $249,000 in depreciation expense. The Evans Corporation also has $789,000 in gross profit.
|