Discussion 1: CPM is an important way for managers to plan and coordinate large scale projects. What is the difference between program and evaluation review technique (PERT) and CPM? What are some key advantages of using CPM? What are some limitations? Find a company’s project and CPM or PERT, and summarize the project from the organization’s perspective.
Discussion 2: Find the solutions and answer the two questions below for the following scenario: A small candy shop is preparing for the holiday season. The owner must decide how many bags of deluxe mix and how many bags of standard mix of Peanut/Raisin Delite to put up. The deluxe mix has 2⁄3 pound raisins and 1⁄3 pound peanuts, and the standard mix has 1⁄2 pound raisins and 1⁄2 pound peanuts per bag. The shop has 90 pounds of raisins and 60 pounds of peanuts to work with.
Peanuts cost $.60 per pound and raisins cost $1.50 per pound. The deluxe mix will sell for $2.90 for a one-pound bag, and the standard mix will sell for $2.55 for a one-pound bag. The owner estimates that no more than 110 bags of one type can be sold. If the goal is to maximize profits, how many bags of each type should be prepared? What is the expected profit? Discuss how you found your answers.