Test #3 Review Problem 6-8, page 254 in the textbook:

A marketing firm is planning to conduct a survey of a segment of the potential product audience for one of its customers. The planning process for preparing to conduct the survey consists of six activities with procedure relationships and activity time estimates given below: a. b. c. Determine all paths through the network from node 1 to node 6 and the duration of each, and indicate the critical path. Determine the earliest and latest activity start and finish times. Determine the slack for each activity.

No 1 2 3 4 5 6

Activity Description Determine survey objectives Select and hire personnel Design questionnaire Train personnel Select target audience Make personnel assignments

Immediate Predecessors --1 1 2,3 3 4,5

Immediate Successors 2,3 4 4,5 6 6 ---

Activity Time 3 3 5 4 3 2

Early Start 0 3 3 8 8 12

Early Finish 3 6 8 12 11 14

Late Start 0 5 3 8 9 12

Late Finish 3 8 8 12 12 14

Slack 0 2 0 0 1 0 Project Completion Time Path 1-2-4-6 1-3-5-6

Critical Path 1 3 4

6 14 Time 12 13 days

2 1 3

4 6 5

Problem 6-17, page 256 in the textbook:

The Stone River Textile Mill was inspected by OSHA and found to be in violation of a number of safety regulations. The OSHA inspectors ordered the mill to alter some exiting machinery to make it safer (e.g., add safety guards); purchase some new machinery to replace older, dangerous machinery; and relocate some machinery to make safer passages and unobstructed entrances and exists. OSHA gave the mill only 35 weeks to make the changes; if the changes were not made by then, the mill would be fined $300,000. The mill determined the activities in a project network that would have to be completed and then estimated the indicated activity times, as shown below. Determine the following: a. b. c. d. Expected activity times Critical path activities (given activity slacks) and their variances Expected project duration, variance, and standard deviation. The probability that the mill will be fined $300,000
Activity No 1 2 3 4 5 6 7 8 9 10 11 Description Order new machinery Plan new physical layout Determine safety changes in existing machinery Receive equipment Hire new employees Make plant alterations Make changes in existing machinery Train new employees Install new machinery Relocate old machinery Conduct employee safety orientation Immediate Predecessors ------1 1 2 3 4,5 4,5,6 4,5,6,7 8,9,10 Immediate Successors 4,5 6 7 8,9,10 8,9,10 9,10 10 11 11 11 --Optimistic Time Est 1 2 1 4 3 10 5 2 1 2 2 Most Likely Time Est 2 5 3 10 7 15 9 3 4 5 2 Pessimistic Time Est 3 8 5 25 12 25 14 7 6 10 2 Mean Time 2.0 5.0 3.0 11.5 7.2 15.8 9.2 3.5 3.8 5.3 2.0 Slack 7.3 0.0 8.7 7.3 11.7 0.0 8.7 9.2 1.5 0.0 0.0 Expected Time Project Variance Project Standard Deviation Probability project will last > 10 11 28.2 9.03 3.00 35 weeks weeks is 0.0115 6 2 Critical Path Variance 0.11 1.00 0.44 12.25 2.25 6.25 2.25 0.69 0.69 1.78 0.00 weeks

Problem 7-3, page 313 in the textbook:

Oranges are grown, picked, and then processed and packaged at distribution centers in Tampa, Miami, and Fresno. These centers supply oranges to markets in New York, Philadelphia, Chicago, and Boston. The table below shows the demand, supply, and shipping costs per truckload ($100s). Find the amounts to be shipped between DCs and markets at the lowest cost. Grain Shipped From 200 150 200

Orange Growers Tampa Miami Fresno Demand Grain Shipped To Total Cost

New York 130 0 0 130 130 $4,700

Orange Markets Phili Chicago 70 0 50 100 50 0 170 100 170 100

Boston 0 0 150 150 150

Supply 200 150 200

From\ To Tampa Miami Fresno

Transportation Costs Per Truckload ($100s) New York Phili Chicago Boston $9 $14 $12 $17 $11 $10 $6 $10 $12 $8 $15 $7