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[Solution Library] (20 Points) The product development group at JDA Software Group has been working on a new computer software product that has the potential

Question: (20 Points)

The product development group at JDA Software Group has been working on a new computer software product that has the potential to capture a large market share. Through outside resources, JDA management learned that a competitor is working to introduce a similar product. As a result, JDA management increased its pressure on the product development group. The group leader turned to PERT/CPM as an aid to schedule the activities remaining before the new product can be brought to the market. The activity time estimates and their order of precedence is as follows:

Time Estimates
Optimistic Most Probable Pessimistic Predecessors
A 3 4 5 -
B 3 3.5 7 -
C 4 5 6 B
D 2 3 4 A, C
E 6 10 14 B
F 7.5 8.5 12.5 B
G 4.5 6 7.5 E
H 5 6 13 E
I 2 2.5 6 D, G
J 4 5 6 H, F
  1. Develop a network diagram and identify critical path activities
  2. What is the probability that the project will be completed so that JDA may introduce the new product within 25 weeks?
  3. Calculate part (b) for introducing the new software within 30 weeks.

(b) The probability we need to find is

\[\Pr \left( X\le \text{25} \right)=\Pr \left( \frac{X-\text{26}}{\text{2}\text{.037313}}\le \frac{\text{25}-\text{26}}{\text{2}\text{.037313}} \right)=\Pr \left( Z\le \text{-0}\text{.491} \right)\] \[=\Phi \left( \text{-0}\text{.491} \right)=\text{0}\text{.3118}\]

( \(\Phi \left( x \right)\) is the cumulative standard normal distribution)

(c) The probability we need to find now is:

\[\Pr \left( X\le \text{30} \right)= \Pr \left( \frac{X-\text{26}}{\text{2}\text{.037313}}\le \frac{\text{30}-\text{26}}{\text{2}\text{.037313}} \right)=\Pr \left( Z\le \text{1}\text{.963} \right)\] \[=\Phi \left( \text{1}\text{.963} \right) =\text{0}\text{.9752}\]

Norton industries is installing a new computer system. The activities, activity times, and order of precedence is as follows:

Normal Time Crash Time Normal Cost Crash Cost Predecessor
A 3 1 900 1700 -
B 6 3 2000 4000 -
C 2 1 500 1000 A
D 5 3 1800 2400 B, C
E 4 3 1500 1850 D
F 3 1 3000 3900 E
G 9 4 8000 9800 B, C
H 3 2 1000 2000 F, G
  1. Develop a project network and find the normal project duration.
  2. What is the minimum cost of finishing this project 3 weeks early?

Price: $2.99
Solution: The downloadable solution consists of 6 pages
Deliverable: Word Document


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