You are the manager of a project to improve the healthcare insurance claims auditing process. For each day that the claims auditing process takes, there is an associated cost of $1,700 so this cost is saved for each day reduction in the project completion time. Following is the information for the healthcare claims auditing process. . The normal time and crash time are the times it will take to complete each activity under each of those scenarios (normal and crash).
Activity Normal Time (days) Crash Time (days) Total Normal Cost Total Crash Cost Immediate Predecessor(s)
A 6 4 $4,000 $6,000 —
B 4 2 $4,000 $7,000 —
C 6 3 $3,000 $6,000 B
D 6 5 $4,500 $5,000 A
E 3 3 $10,000 $10,000 C
Based on the information provided, what is the minimum-cost schedule? For this minimum-cost schedule, identify the critical path, the time for each activity and the total cost for completing the project?
