The personnel manager of Powerwest Inc. wants to estimate the direct and cumulative average direct labor hours for producing 30 locomotive train units during the next year. He estimates from past experience that the learning rate is 90 percent. The production department estimate that manufacturing the first unit will take 30,000 hours. Each employee averages 200 hours per month. The production rate forecast is as follows:MonthProduction Rate (units)MonthProduction Rate (units)January2July2February3August4March2September3April4October3May3November1June2December1Show/explain step by step, so I fully understand the process.How many direct hours are required to produce the 30th unit?How many total hours are needed to produce all 30 units?What is the maximum number of employees required next year?If the learning rate were to change to 0.85, what would be the impact on the total hours and the number of employees needed to produce 30 units?

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Answered: How many direct hours are required to…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The personnel manager of Powerwest Inc. wants to estimate the direct and cumulative average direct labor hours for producing 30 locomotive train units during the next year. He estimates from past experience that the learning rate is 90 percent. The production department estimate that manufacturing the first unit will take 30,000 hours. Each employee averages 200 hours per month. The production rate forecast is as follows:

Month	Production Rate (units)	Month	Production Rate (units)
January	2	July	2
February	3	August	4
March	2	September	3
April	4	October	3
May	3	November	1
June	2	December	1

Show/explain step by step, so I fully understand the process.

How many direct hours are required to produce the 30^th unit?
How many total hours are needed to produce all 30 units?
What is the maximum number of employees required next year?
If the learning rate were to change to 0.85, what would be the impact on the total hours and the number of employees needed to produce 30 units?

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