Reference no: EM1348443
1. It is the end of the second week of July. Crystal Hamaty, the manager of a road construction project, has noted in her contract with the city of Hershey, Idaho that there will be a $15,000 per week penalty for every week that the project extends past its end-of-September due date. Additionally, the city has offered to pay a bonus of $20,000 if her crew can finish the project by the end of the third week of September. Ms. Hamaty plans to start work at the beginning of the third week of July. The mayor wishes to avoid problems with snow, which often arrives early because of Hershey's location at 5,853 feet (1,784 meters) above sea level. For the sake of simplicity, we assume exactly four weeks and 20 workdays for every month. The project network, with normal times, is displayed below:
a. Draw a network diagram for this project. Your diagram should show the ES, EF, LF, LS, and Slack. Follow the diagram structure we discussed in class.
b. Calculate the crash cost per week for each activity.
c. Show the sequence of crashing decisions you would make to compress this project most cost effectively. Calculate total cost. Keep in mind that the penalty is incurred for every week past the end of September, and remember to consider the bonus.
d. Explain your rationale and describe how you would present the options to the Hershey City Council.
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