5. A XTZ company has been offered a contract to build and deliver nine extruding presses to [4] the ABC bottling company

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5 A Xtz Company Has Been Offered A Contract To Build And Deliver Nine Extruding Presses To 4 The Abc Bottling Company 1 (32.25 KiB) Viewed 37 times

5. A XTZ company has been offered a contract to build and deliver nine extruding presses to [4] the ABC bottling company. The contract price is contingent on meeting a specified delivery time, a bonus being given for early delivery. The marketing department has established the following cost and the time information Normal Time (weeks) Crash Normal Crash Activity Most Time Optimistic Pessimistic Cost (2) Cost (2) Likely (weeks) 1-2 1 5 3 15,000 1 19,000 2-3 1 7 4 18,000 3 24,000 2-4 1 S 3 14,000 2 16,000 2-5 5 11 15,000 7 16,000 3-6 2 6 13,000 15,000 4-6 5 7 12,000 13,000 5-7 4 6 5 20,000 4 24,000 6-7 1 5 3 17,000 1 20,000 The normal delivery time is 16 weeks for a contract price of 1,24,000. Based on the probability for each of the following specified delivery time, recommend the delivery schedule that X7Z company should follow. Page 2 of 6 Contract delivery time Contract Amount (3) 1,42,500 15 1,45,000 1,50,000 1,52,500 109 5232 14 13 12 8 4 6 2 4