Answer to Question #344239 in Management for jovani

Question

1. An average annual consumption of a material is 18,250 units at a price of ETB 36.50 per unit. The storage cost is 20% of an average inventory and the cost of placing an order is ETB 50. How much quantity is to be purchased at a times?  

6. Consider the following data (ETB and days). 

a. Draw activity network of the project.  

b. Crash the activities step by step until all paths are critical. 

Activity 

Normal Time 

Normal Cost 

Crash Time 

Crash Cost

1-2 

20 

600 

17 

720

1-3 

25 

200 

25 

200

2-3 

10 

300 

8 

440

2-4 

12 

400 

6 

700

3-4 

5 

300 

2 

420

4-5 

10 

300 

5 

600

4-6 

5 

600 

3 

900

5-7 

10 

500 

5 

800

6-7 

8 

400 

3 

700