The Bender Construction Co. is involved in constructing municipal buildings and other structures that are used primarily by city and state municipalities. This requires developing legal documents, drafting feasibility studies, obtaining bond ratings, and so forth. Recently, Bender was given a request to submit a proposal for the construction of a municipal building. The first step is to develop legal documents and to perform all steps necessary before the construction contract is signed. This requires that more than 20 separate activities be completed. These activities, their immediate predecessors, and their time requirements are given in Table 11.10.
As you can see, optimistic (a), most likely (m), and pessimistic (b) time estimates have been given for all of the activities described in the table. Using the data, determine the total project completion time for this preliminary step, the critical path(s), and the slack time for all activities involved.
Table 11.10:
WEEKS АСTIVITY a b DESCRIPTION OF ACTIVITY IMMEDIATE PREDECESSORS 1 1 4 5 Draft of legal documents 3 4 Preparation of financial statements 3 3 4 5 Draft of history 7 8. 9. Draft demand portion of feasibility study 4 4 5 Review and approval of legal documents 1 6 1 4 Review and approval of history 3 7 4 5 Review of feasibility study 4 8 1 2 4 Draft final financial portion of feasibility study 7 4 4 Draft facts relevant to the bond transaction 10 1 1 2. Review and approval of financial statements 11 18 20 26 Receive firm price of project 12 1 3 Review and completion of financial portion of feasibility study 8 13 1 1 Completion of draft statement 6, 9, 10, 11, 12 14 .10 .14 .16 All material sent to bond rating services 13 15 .2 .3 .4 Statement printed and distributed to all interested parties 14 16 1 1 Presentation to bond rating services 14 17 1 bond rating received 16 18 5 7. Marketing of bonds 15, 17 19 .1 .1 .2 Purchase contract executed 18 20 .1 .14 .16 Final statement authorized and completed 19 21 2. Purchase contract 19 22 .1 .1 .2 bond proceeds available 20 23 .2 .2 Sign construction contract 21, 22 00
> Mr. Fetterolf (see Problem 12-38) is considering changing the queuing characteristics of his shop. Instead of selecting a number for the first available barber, a customer will be able to select which barber he or she prefers upon arrival. Assuming tha
> Fetterolf's Barber Shop is a popular haircutting place near the campus of Penn State. Four barbers work full-time and spend an average of 15 minutes on each customer. Customers arrive all day long, at an average rate of 12 per hour. When they enter
> During peak times, the entry gate at a large amusement park experiences an average arrival of 500 customers per minute, according to a Poisson distribution. The average customer requires 4 seconds to be processed through the entry gate. The park’
> An operator processes jobs on a first-come, first served basis. The jobs have Poisson arrival rates, with an average of 6 minutes between arrivals. The objective is to process these jobs so that they spend no more than 8 minutes, on average, in the sys
> The director of security wants to connect security video cameras to the main control site from five potential trouble locations. Ordinarily, cable would simply be run from each location to the main control site. However, because the environment is pote
> Using the data in Solved Problem 10-3, develop a spreadsheet for a two-period weighted moving average forecast with weights of 0.6 1w12 for the most recent period and 0.4 (w2) for the other period. Note these weights sum to 1, so the forecast is simply
> In Solved Problem 10.3, nonlinear programming was used to find the best value for the smoothing constant, a, in an exponential smoothing forecasting problem. To see how much the MAD can vary due to the selection of the smoothing constant, use Excel and
> The XYZ Corporation is expanding its market to include Texas. Each salesperson is assigned to potential distributors in one of five different areas. It is anticipated that the salesperson will spend about three to four weeks in the assigned area. A state
> What is Monte Carlo simulation? What principles underlie its use, and what steps are followed in applying it?
> Summertime Tees sells two very popular styles of embroidered shirts in southern Florida: a tank top and a regular T-shirt. The cost of the tank top is $6, and the cost of the T-shirt is $8. The demand for these is sensitive to the price, and historical
> Pat McCormack, a financial advisor for Investors R Us, is evaluating two stocks in a particular industry. He wants to minimize the variance of a portfolio consisting of these two stocks, but he wants to have an expected return of at least 9%. After obt
> During the busiest season of the year, Green-Gro Fertilizer produces two types of fertilizers. The standard type (X) is just fertilizer, and the other type (Y) is a special fertilizer and weed-killer combination. The following model has been developed
> Motorcross of Wisconsin produces two models of snowmobiles, the XJ6 and the XJ8. In any given production-planning week, Motorcross has 40 hours available in its final testing bay. Each XJ6 requires 1 hour to test and each XJ8 takes 2 hours. The revenue
> Hinkel Rotary Engine, Ltd., produces four- and six cylinder models of automobile engines. The firm’s profit for each four-cylinder engine sold during its quarterly production cycle is $1,800 - $50X1, where X1 is the number sold. Hinkel makes $2,4
> Billy’s Bank is the only bank in a small town in Arkansas. On a typical Friday, an average of 10 customers per hour arrives at the bank to transact business. There is one single teller at the bank, and the average time required to transact busine
> Refer to the Billy’s Bank situation in Problem 12-24. Billy is considering adding a second teller (who would work at the same rate as the first) to reduce the waiting time for customers, and he assumes that this will cut the waiting time in half.
> An Oklahoma manufacturer makes two products: speaker telephones 1X12 and pushbutton telephones 1X22. The following goal programming model has been formulated to find the number of each to produce each day to meet the firm’s goals: Minimize P1d1-
> The cellular phone industry is very competitive. Two companies in the greater Lubbock area, Horizon and Local Cellular, are constantly battling each other in an attempt to control the market. Each company has a 1-year service agreement. At the end of e
> Hervis Rent-A-Car has three car rental locations in the greater Houston area: the North side branch, the West End branch, and the Suburban branch. Customers can rent a car at any of these places and return it to any of the others without any additional
> How do the three types of integer programming problems differ? Which do you think is most common, and why?
> Professor Green gives 2-month computer programming courses during the summer term. Students must pass a number of exams to pass the course, and each student is given three chances to take the exams. The following states describe the possible situation
> Monohan Machinery specializes in developing weed-harvesting equipment that is used to clear small lakes of weeds. George Monohan, president of Monohan Machinery, is convinced that harvesting weeds is far better than using chemicals to kill weeds. Chemi
> The personal computer industry is very fast moving, and technology provides motivation for customers to upgrade with new computers every few years. Brand loyalty is very important, and companies try to do things to keep their customers happy. However,
> Refer to the real estate investment situation in Problem 10.17. Problem 10.17: A real estate developer is considering three possible projects: a small apartment complex, a small shopping center, and a mini-warehouse. Each of these requires differen
> The following are the activity times for the project in Problem 11-16. Find the earliest, latest, and slack times for each activity. Then find the critical path. ACTIVITY TIME (DAYS) A …………………&hellip
> Jean Walker is making plans for spring break at the beaches in Florida. In applying techniques she learned in her quantitative methods class, she has identified the activities that are necessary to prepare for her trip. The following table lists the ac
> The University of South Wisconsin has had steady enrollments over the past 5 years. The school has its own bookstore, called University Book Store, but there are also three private bookstores in town: Bill’s Book Store, College Book Store, and Ba
> Trapeze Investments is a venture capital firm that is currently evaluating six different investment opportunities. There is not sufficient capital to invest in all of these, but more than one will be selected. A 0–1 integer programming model is p
> Shader Storage Technologies produces refrigeration units for food producers and retail food establishments. The overall average temperature that these units maintain is 46° Fahrenheit. The average range is 2° Fahrenheit. Samples of six are take
> Sid Davidson is the personnel director of Babson and Willcount, a company that specializes in consulting and research. One of the training programs that Sid is considering for the middle-level managers of Babson and Willcount is leadership training. Si
> What are the assumptions underlying common queuing models?
> For the post office in Problem 12-17, a second drive through window is being considered. A single line would be formed, and as a car reached the front of the line it would go to the next available clerk. The clerk at the new window works at the same rate
> Automobiles arrive at the drive-through window at a post office at the rate of four every 10 minutes. The average service time is 2 minutes. The Poisson distribution is appropriate for the arrival rate and service times are exponentially distributed. (
> Ashley’s Department Store in Kansas City maintains a successful catalog sales department in which a clerk takes orders by telephone. If the clerk is occupied on one line, incoming phone calls to the catalog department are answered automatically by a reco
> The wheat harvesting season in the American Midwest is short, and most farmers deliver their truckloads of wheat to a giant central storage bin within a 2-week span. Because of this, wheat-filled trucks waiting to unload and return to the fields have bee
> A university cafeteria line in the student center is a self-serve facility in which students select the food items they want and then form a single line to pay the cashier. Students arrive at the cashier at a rate of about four per minute according to a
> Mike Dreskin manages a large Los Angeles movie theater complex called Cinema I, II, III, and IV. Each of the four auditoriums plays a different film; the schedule is set so that starting times are staggered to avoid the large crowds that would occur if a
> From historical data, Harry’s Car Wash estimates that dirty cars arrive at the rate of 10 per hour all day Saturday. With a crew working the wash line, Harry figures that cars can be cleaned at the rate of one every 5 minutes. One car at a time is cleane
> The Rockwell Electronics Corporation retains a service crew to repair machine breakdowns that occur on an average of
> The Schmedley Discount Department Store has approximately 300 customers shopping in its store between 9 a.m. and 5 p.m. on Saturdays. In deciding how many cash registers to keep open each Saturday, Schmedley’s manager considers two factors: customer wait
> The Laurenster Corporation has determined the client will pay it a $10,000 bonus if it completes the project in Problem 11-37 in 14 weeks or less. The associated normal times and costs as well as the crash times and costs are shown below. Considering th
> Briefly describe PERT/Cost and how it is used.
> The Laurenster Corporation needs to perform the tasks in the following list. Develop the associated PERT network diagram, and determine the probability that the project will be complete in 16 weeks or less. MOST IMMEDIATE OPTIMISTIC LIKELY PESSIMIST
> The L. O. Gystics Corporation is in need of a new regional distribution center. The planning for this project is in the early stages, but the activities have been identified, along with their predecessors and their activity times in weeks. The table belo
> The managing partner of the Scott Corey accounting firm (see Problem 11-34) has decided that the system must be up and running in 16 weeks. Consequently, information about crashing the project was put together and is shown in the following table: Proble
> The following costs have been estimated for the activities in a project: (a). Develop a cost schedule based on earliest start times. (b). Develop a cost schedule based on latest start times. (c). Suppose that it has been determined that the $6,000 for a
> The estimated times (in weeks) and immediate predecessors for the activities in a project are given in the following table. Assume that the activity times are independent. (a). Calculate the expected time and variance for each activity. (b). What is th
> Dream Team Productions was in the final design phases of its new film, Killer Worms, to be released next summer. Market Wise, the firm hired to coordinate the release of Killer Worms toys, identified 16 critical tasks to be completed before the release o
> Getting a degree from a college or university can be a long and difficult task. Certain courses must be completed before other courses may be taken. Develop a network diagram in which every activity is a particular course that must be taken for a given d
> Bowman Builders manufactures steel storage sheds for commercial use. Joe Bowman, president of Bowman Builders, is contemplating producing sheds for home use. The activities necessary to build an experimental model and related data are given in the follow
> General Foundry’s project crashing data are shown in Table 11.9. Crash this project to 13 weeks using CPM. What is the final time for each activity after crashing? Table 11.9: TIME (WEEKS) COST ($) CRASH COST CRITICAL АCTIVITY NORMA
> How can we determine the probability that a project will be completed by a certain date? What assumptions are made in this computation?
> Fred Ridgeway has been given the responsibility of managing a training and development program. He knows the earliest start time, the latest start time, and the total cost for each activity. This information is given in the following table: (a). Using e
> The air pollution project discussed in the chapter has progressed over the past several weeks, and it is now the end of week 8. Lester Harky would like to know the value of the work completed, the amount of any cost overruns or under runs for the project
> Using PERT, Ed Rose was able to determine that the expected project completion time for the construction of a pleasure yacht is 21 months and the project variance is 4. (a). What is the probability that the project will be completed in 17 months or les
> Tom Schriber, the director of personnel of Management Resources, Inc., is in the process of designing a program that its customers can use in the job-finding process. Some of the activities include preparing resumés, writing letters, making
> A project was planned using PERT with three time estimates. The expected completion time of the project was determined to be 40 weeks. The variance of the critical path is 9. (a). What is the probability that the project will be finished in 40 weeks or
> After consulting with Butch Radner, George Monohan was able to determine the activity times for constructing the weed-harvesting machine to be used on narrow rivers. George would like to determine ES, EF, LS, LF, and slack time for each activity. The tot
> Sid Davidson was able to determine the activity times for the leadership training program. He would like to determine the total project completion time and the critical path(s). The activity times appear in the following table (see Problem 11-12): ACTIV
> The integer programming problem below has been developed to help First National Bank decide where, out of 10 possible sites, to locate four new branch offices: Xi represents Winter Park, Maitland, Osceola, Downtown, South Orlando, Airport, Winter Garden,
> Mick Garcia, a certified financial planner (CFP), has been asked by a client to invest $250,000. This money may be placed in stocks, bonds, or a mutual fund in real estate. The expected return on investment is 13% for stocks, 8% for bonds, and 10% for re
> Major Bill Bligh, director of the Army War College’s new 6-month attaché training program, is concerned about how the 20 officers taking the course spend their precious time while in his charge. Major Bligh recognizes that there are 168 hours per week an
> If you were the president of the college you are attending and were employing goal programming to assist in decision making, what might your goals be? What kinds of constraints would you include in your model?
> Hilliard Electronics produces specially coded computer chips for laser surgery in 64MB, 256MB, and 512MB sizes. (1MB means that the chip holds 1 million bytes of information.) To produce a 64MB chip requires 8 hours of labor, a 256MB chip takes 13 hours,
> Solve Problem 10-21. Are any goals unachieved in this solution? Explain. Problem 10-21: Geraldine Shawhan is president of Shawhan File Works, a firm that manufactures two types of metal file cabinets. The demand for her two-drawer model is up to 600 cab
> Geraldine Shawhan is president of Shawhan File Works, a firm that manufactures two types of metal file cabinets. The demand for her two-drawer model is up to 600 cabinets per week; the demand for a three-drawer cabinet is limited to 400 per week. Shawhan
> The campaign manager for a politician who is running for reelection to a political office is planning the campaign. Four ways to advertise have been selected: TV ads, radio ads, billboards, and social media advertising buys. The costs of these are $900 f
> Triangle Utilities provides electricity for three cities. The company has four electric generators that are used to provide electricity. The main generator operates 24 hours per day, with an occasional shutdown for routine maintenance. Three other genera
> A real estate developer is considering three possible projects: a small apartment complex, a small shopping center, and a mini-warehouse. Each of these requires different funding over the next 2 years, and the net present values of the investments also v
> Innis Construction Company specializes in building moderately priced homes in Cincinnati, Ohio. Tom Innis has identified eight potential locations to construct new single-family dwellings, but he cannot put up homes on all of the sites because he has onl
> Horizon Wireless, a cellular telephone company, is expanding into a new era. Relay towers are necessary to provide wireless telephone coverage to the different areas of the city. A grid is superimposed on a map of the city to help determine where the tow
> An airline owns an aging fleet of Boeing 737 jet airplanes. It is considering a major purchase of up to 17 new Boeing model 787 and 767 jets. The decision must take into account numerous cost and capability factors, including the following: (1) the air
> Student Enterprises sells two sizes of wall posters, a large 3- by 4-foot poster and a smaller 2- by 3-foot poster. The profit earned from the sale of each large poster is $3; each smaller poster earns $2. The firm, although profitable, is not large; it
> What are the earliest activity start time and latest activity start time? How are they computed?
> A group of college students is planning a camping trip during the upcoming break. The group must hike several miles through the woods to get to the campsite, and anything that is needed on this trip must be packed in a knapsack and carried to the campsit
> Elizabeth Bailey is the owner and general manager of Princess Brides, which provides a wedding planning service in southwestern Louisiana. She uses radio advertising to market her business. Two types of ads are available—those during prime-time hours and
> Hard rock Concrete’s owner has decided to increase the capacity at his smallest plant (see Problem 9.8). Instead of producing 30 loads of concrete per day at plant 3, that plant’s capacity has been doubled to 60 loads.
> The Hard rock Concrete Company has plants in three locations and is currently working on three major construction projects, each located at a different site. The shipping cost per truckload of concrete, daily plant capacities, and daily project require
> The management of the Executive Furniture Corporation decided to expand the production capacity at its Des Moines factory and to cut back the production capacities at its other two factories. It also recognizes a shifting market for its desks and revises
> Four automobiles have entered Bubba’s Repair Shop for various types of work, ranging from a transmission overhaul to a brake job. The experience level of the mechanics is quite varied, and Bubba would like to minimize the time required to complete all of
> In a job shop operation, four jobs may be performed on any of four machines. The hours required for each job on each machine are presented in the following table. The plant supervisor would like to assign jobs so that total time is minimized. Find the be
> Using the data from Problem 9-20 plus the unit production costs shown in the following table, which locations yield the lowest cost? LOCATION PRODUCTION COSTS Decatur …………
> Don Levine Corporation is considering adding an additional plant to its three existing facilities in Decatur, Minneapolis, and Carbondale. Both St. Louis and East St. Louis are being considered. Evaluating only the transportation costs per unit, as shown
> Marc Smith, vice president for operations of HHN, Inc., a manufacturer of cabinets for telephone switches, is constrained from meeting the 5-year forecast by limited capacity at the existing three plants. These three plants are Waterloo, Pusan, and Bogot
> Briefly discuss what is meant by critical path analysis. What are critical path activities, and why are they important?
> Ashley’s Auto Top Carriers currently maintains plants in Atlanta and Tulsa that supply major distribution centers in Los Angeles and New York. Because of an expanding demand, Ashley has decided to open a third plant and has narrowed the
> The J. Mehta Company’s production manager is planning for a series of 1-month production periods for stainless steel sinks. The demand for the next 4 months is as follows: MONTH DEMAND FOR STAINLESS STEEL SINKS 1 ……………………………………………………… 120 2 ………………………………
> The B. Hall Real Estate Investment Corporation has identified four small apartment buildings in which it would like to invest. Mrs. Hall has approached three savings and loan companies regarding financing. Because Hall has been a good client in the past
> The three blood banks in Franklin County are coordinated through a central office that facilitates blood delivery to four hospitals in the region. The cost to ship a standard container of blood from each bank to each hospital is shown in the table on thi
> The state of Missouri has three major power-generating companies (A, B, and C). During the months of peak demand, the Missouri Power Authority authorizes these companies to pool their excess supply and to distribute it to smaller, independent power compa
> Finnish Furniture manufactures tables in facilities located in three cities—Reno, Denver, and Pittsburgh. The tables are then shipped to three retail stores located in Phoenix, Cleveland, and Chicago. Management wishes to develop a dist
> Northwest University is in the process of completing a computer bus network that will connect computer facilities throughout the university. The prime objective is to string a main cable from one end of the campus to the other (nodes 1–
> An air-conditioning manufacturer produces room air conditioners at plants in Houston, Phoenix, and Memphis. These are sent to regional distributors in Dallas, Atlanta, and Denver. The shipping costs vary, and the company would like to find the least-cost
> South Side Oil and Gas, a new venture in Texas, has developed an oil pipeline network to transport oil from exploration fields to the refinery and other locations. There are 10 pipelines (branches) in the network. The oil flow in hundreds of gallons and
> The Oakton River had long been considered an impediment to the development of a certain medium-sized metropolitan area in the Southeast. Lying to the east of the city, the river made it difficult for people living on its eastern bank to commute to jobs i
> For more than 75 years, New England Foundry, Inc., has manufactured wood stoves for home use. In recent years, with increasing energy prices, George Mathison, president of New England Foundry, has seen sales triple. This dramatic increase in sales has ma
> Northeastern Airlines is a regional airline serving nine cities in the New England states, as well as cities in New York, New Jersey, and Pennsylvania. While nonstop flights are available for some of the routes, connecting flights are often necessary. Th
> FB Badpoore Aerospace makes carbon brake discs for large airplanes with a proprietary “cross weave” of the carbon fibers. The brake discs are 4 feet in diameter but weigh significantly less than conventional ceramic br
> Dr. Adinombe Watage, deputy director of the Family Planning Research Center in Nigeria’s Over-the-River Province, was assigned the task of organizing and training five teams of field workers to perform educational and outreach activitie
> What are some of the questions that can be answered with PERT and CPM?