Project Management

PAZ351 MATHEMATICAL MODELING FOR BUSINESS APPLICATIONS CASE STUDY∗

Southwestern University Stadium Construction

Quantitative Analysis for Management, 9th Edition, Render, Stair & Hanna (2006) page 561 Submission Date: 05/11/2007

After six months of study, much political arm wrestling, and some financial analysis, Dr. Martin Starr, president of Southwestern University, had reached a decision. To delight of its students, and to the disappointment of its athletic boosters, SWU would not be relocating to a new football site but would expand the capacity at its on-campus stadium. Adding 21, 000 seats, including dozens of luxury skyboxes, would not please everyone. The influential football coach, Bo Pitterno, had long argued the need for a first class stadium, one with built in dormitory rooms for his players palatial office appropriate for the coach of future NCAA champion team. But the decision was made, and everyone, including the coach, would learn to live with it. The job now was to get construction going immediately after the 2007 season ended. This would allow exactly 270 days until the 2008 season opening game. The contractor, Hill Construction(Bob Hill being an alumnus, of course), signed the contract. Bob Hill looked at the tasks his engineers had outlined and looked President Starr in eye. ”I guarantee the team will be able to take the field on schedule next year”, he said with a sense of confidence. ”I sure hope so”, replied the Starr. ”The contract penalty of 10, 000 per day for running late is nothing compared to what Coach Pitterno will do to you if our opening game with Penn State is delayed or cancelled.” Hill, sweating slightly, did not respond. In football-crazy Texas, Hill Construction would be mud if the 270-day target were missed.

TIME ESTIMATES (DAYS) PREDECESSORS A A C B E D,E G H H J I,K OPTIMISTIC 20 20 50 30 25 1 25 10 20 8 1 20 MOST LIKELY 30 65 60 50 30 1 30 20 25 10 1 25 PESSIMISTIC 40 80 100 100 35 1 35 30 60 12 1 60 CRASH COST/DAY 1,500...