Jericho Vehicles is considering making a bid for a mobilerocket-launching system for the U.S. military. However,the company has almost no experience in producing thistype of vehicle. In an effort to develop a learning curvefor the production of this new mobile weapon system, management has called contacts from several former competitors who went bankrupt. Although management couldnot obtain direct learning curve rates, they did learn fromone contact that for a system with similar features, the firstunit required 2400 hours of direct labor to produce and the30th and final unit required 1450 hours to produce. Determine the learning curve rate for this vehicle.

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...
icon
Related questions
Question

Jericho Vehicles is considering making a bid for a mobile
rocket-launching system for the U.S. military. However,
the company has almost no experience in producing this
type of vehicle. In an effort to develop a learning curve
for the production of this new mobile weapon system, management has called contacts from several former competitors who went bankrupt. Although management could
not obtain direct learning curve rates, they did learn from
one contact that for a system with similar features, the first
unit required 2400 hours of direct labor to produce and the
30th and final unit required 1450 hours to produce. Determine the learning curve rate for this vehicle.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Layout strategy
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.