Part a:
Part b:
Earliest start and finish time is 20 weeks with the following path:
A—-àC–àF—àH–àI
Latest start and finish time is 43 weeks with the following path:
A—àB–àD—àG–àI
Part c:
Critical path is as following:
A—-àC–àF—àH–àI
The total expected time to complete the project with above critical path is 30 weeks, i.e. as per expected time.
Part d:
In order to be 95% sure of not incurring delay penalty Kelly Inc. should specify (43 x 95%) = 41 weeks in the bid.
Part e:
The table below shows the calculation as to the cost and reward tradeoff for crush time. Based on the following table let us calculate the optimum cost and time trade off.
| Activity | Normal time (weeks) | Crash cost / week ($) | Allowed crush weeks | Total cost for crush time ($) | Expected reward | Net gain / (loss) |
| A | 6 | 10,000.00 | 2 | 20,000.00 | 10,000.00 | (10,000.00) |
| B | 4,000.00 | 1 | 4,000.00 | 5,000.00 | 1,000.00 | |
| C | 6,000.00 | 2 | 12,000.00 | 10,000.00 | (2,000.00) | |
| D | 11 | 3,500.00 | 3 | 10,500.00 | 15,000.00 | 4,500.00 |
| E | 3 | 1,000.00 | 1 | 1,000.00 | 5,000.00 | 4,000.00 |
| F | 6 | 2,000.00 | 2 | 4,000.00 | 10,000.00 | 6,000.00 |
| G | 2 | 10,000.00 | 1 | 10,000.00 | 5,000.00 | (5,000.00) |
| H | 6 | 4,000.00 | 1 | 4,000.00 | 5,000.00 | 1,000.00 |
| I | 9 | 15,000.00 | 3 | 45,000.00 | 15,000.00 | (30,000.00) |
As can be seen from the above that the optimum benefit to the organization would be to crush 2 weeks in activity F to make a net gain of $6,000. The total positive gain to the organization for crush time would be $16,500 for crushing 8 weeks in Activity B, D, E, F and H as can be seen from the above table.
