Operation Management Case
1. The R&D department is planning to bid on a large project for the development of a new communication system for commercial planes. The accompanying table shows the activities, times, and sequences required:
|Activity |Immediate Predecessor |Time (weeks) |
|A |- |3 |
|B |A |2 |
|C |A |4 |
|D |A |4 |
|E |B |6 |
|F |C, D |6 |
|G |D, F |2 |
|H |D |3 |
|I |E, G, H |3 |
a. Construct the appropriate network diagram. (10 points) [pic] [pic]
b. What is the project completion time? A-C-F-G-I OR A-D-F-G-I =3+4+6+2+3=18 WEEKS
c. Suppose you want to shorten the completion time as much as possible, and you have the following options each at an additional cost of $1500: 1) Reduce activity C by one week; 2) Reduce activity D by one week; 3) Reduce activity G by one week; If you will save $2000 for each week that the earliest completion time is reduced, which option, if any, would you choose? (10 points) C, D, G are good options to choose, and the cost are less than $2000.
|Activity |Immediate Predecessor |Time (weeks) |
|A |- |3 |
|B |A |2 |
|C |A |4 |
|D |A |4 |
|E |B |6 |
|F |C, D |6 |
|G |D, F |2 |
|H |D |3 |
|I |E, G, H |3 |
a. Construct the appropriate network diagram. (10 points) [pic] [pic]
b. What is the project completion time? A-C-F-G-I OR A-D-F-G-I =3+4+6+2+3=18 WEEKS
c. Suppose you want to shorten the completion time as much as possible, and you have the following options each at an additional cost of $1500: 1) Reduce activity C by one week; 2) Reduce activity D by one week; 3) Reduce activity G by one week; If you will save $2000 for each week that the earliest completion time is reduced, which option, if any, would you choose? (10 points) C, D, G are good options to choose, and the cost are less than $2000.