Scheduling a project using pert

Question

Assignment:

Q1. At a local money exchange store, the short cost (not enough) and long cost (too much) depend on how much they stock and what the future demand are. Below table contains cost values for different stocking amount (rows) and different future cash demand amount (columns). The store wants to minimize by choosing the optimum stocking amount. Calculate expected cost for each stocking amount (5 of them). How much cash should the store stock?  

 

 

Future cash demand & probability
Stocking Amount	100,000 10%	200,000 10%	250,000 20%	300,000 30%	400,000 30%	Expected Cost
100,000	$0	1080	1120	1160	1240
200,000	600	0	1040	1080	1160
250,000	650	550	0	1040	1120
300,000	700	600	550	0	1080
400,000	800	700	650	600	0

 

Q2. An oil change shop is trying to determine how many cases of engine oil they should order from its distributor. They use 60,000 cases per year. Annual carrying cost is 20% of the item cost. Ordering cost is $8.50 per order. The distributor offers the following quantity discount schedule:

 

quantity            cost ($)

 

1- 999              5.00

 

1000-1999         4.50

 

2000+               4.25

 

Q3. What is the EOQ for each item cost?

 

Q4. What is total cost (holding cost + ordering cost + material cost) if they buy at $4.50 per case at the minimum total cost point on $4.50 curve (EOQ point for $4.50)?

 

Q5. What is total cost (holding cost + ordering cost + material cost) if they buy at $4.25 per case at the minimum allowable order quantity (Q = 2000)?

 

Q6. Considering above, what is the final condition (price and order quantity) you recommend in order to obtain at the lowest total cost?

 

A student wants to schedule a project using PERT. She has determined the following activities, precedence relationships and time estimates in days for the project.

 

 

 

              TIME estimate          Exp Time  Variance     

 

Act       t_o          t_m         t_p         t_e           V_t              

 

 

 

a          4          6          7          5.83      0.250 

 

b          1          2          3          2.00      0.111 

 

c          5          5          5          5.00      0.000 

 

d          7          9          12         9.17      0.694

 

e          2          4          8          4.33      1.000

 

f           6          9          10         8.67      0.444

 

Q7. Name all potential paths and their path durations.

 

Q8. Calculate ES, EF, LS, LF, and slack for all activities.

 

Q9. How many days can activity "c" be delayed without extending project duration?

Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.