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TCTO numerical: optimal crashed time, Rs 2500/week

Short answer

Crash critical activities with smallest cost slope as long as indirect saving (Rs 2500/week) exceeds slope. Normal 22 weeks at Rs 79,000. Optimum: 19 weeks, total cost Rs 71,950. No further crashing reduces total cost.

Consider the data of a project as shown in table below. If the indirect cost per week is Rs. 2500, find the optimal crashed project completion time and corresponding minimum cost.

ActivityImmediate PredecessorNormal Time (Week)Normal Cost (Rs.)Crash Duration (Week)Crash Cost (Rs.)
P-7250042200
Q-9450074200
RP5350043000
SP8550075100
TQ9300082500
UQ12550012-
VS, T4150021800

Given data and method

Indirect cost = 2,500 Rs/week. Time-cost trade-off (TCTO) crashes the activities on the critical path, one time-unit at a time, always choosing the cheapest cost slope, as long as the saving in indirect cost is more than the extra direct cost.

Assumption: for P, Q, R, S and T the table lists the crash cost below the normal cost, which is impossible for a crash. These columns are taken as interchanged, i.e. the smaller value is the normal cost and the larger is the crash cost. U cannot be crashed (crash duration equals normal duration).

Cost slope=Crash cost−Normal costNormal duration−Crash duration\text{Cost slope}=\frac{\text{Crash cost}-\text{Normal cost}}{\text{Normal duration}-\text{Crash duration}}
ActivityNormal durCrash durNormal costCrash costSlope
P742,2002,500100
Q974,2004,500150
R543,0003,500500
S875,1005,500400
T982,5003,000500
U12125,5005,500cannot crash
V421,5001,800150

Paths at normal duration

  • P-R = 12 weeks
  • P-S-V = 19 weeks
  • Q-T-V = 22 weeks
  • Q-U = 21 weeks

Critical activities (on the longest path or paths): Q, T, V; normal duration = 22 weeks; normal direct cost = 24,000 Rs.

Crashing, step by step

StepCrash (by 1 unit)Slope/costDurationDirectIndirectTotal
0--2224,00055,00079,000
1Q1502124,15052,50076,650
2Q1502024,30050,00074,300
3V1501924,45047,50071,950

Result

  • Optimum (minimum-cost) schedule: duration 19 weeks, direct cost 24,450 + indirect 47,500 = 71,950 Rs.
  • Activities crashed at the optimum: Q by 2, V by 1. Durations: P=7, Q=7, R=5, S=8, T=9, U=12, V=3.
  • Minimum possible duration: 19 weeks, with total cost 71,950 Rs (direct 24,450 + indirect 47,500).

Answer: optimal crashed project completion time = 19 weeks; minimum total cost = Rs 71,950.

✓ Answer checked by Claude Opus 5.5 (high effort)

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