| Popis: |
Decision making has become much more complicated than in the past due to increased decision alternatives, uncertainty, and cost of making errors. As a result, it is very difficult to rely on a trial and error approach in decision making. Nowadays business managers are dealing with different types of projects ranging from implementing a large scale manufacturing plant to a simple sales campaign. While dealing with projects, to become competitive, sometimes it is required to complete a project within the predetermined deadline to keep cost at lowest possible level. Failure to do so ultimately leads to increase in total cost. This would direct managers to encounter a decision situation: which activities of the project will be crashed to minimize the total cost of crashing project. In this paper, we provide a hypothetical example to clarify the framework of how to convert from LOB to CPM and then how to create a model to crash a project time to reach an optimum time-cost solution. Microsoft Excel custom made sheets used to the conversion, also Solver add-in used to solve the model while it implements Linear Programming. As a check, results from Solver and LiPS software are compared. |
