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Crashing Project Time with Least Cost: A Linear Programming Approach

Mohammad Nazmul Islam
Md. Baktiar Rana
Shuddasattwa Rafiqul
Tasnima Aziza
Journal of Business Administration, vol. 6, 2004

Summary:

Business and its environment are more complex today than ever before. And 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. So 
managers must become more rational in decision making by using more effective tools and techniques.  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. This paper mainly provides a framework for reducing total project time at the least total cost  by crashing the project network using Linear Programming (LP). Then the model is solved with hypothetical  data of a hypothetical project by using Solver in Microsoft Excel.
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