STEVENSON OPERATIONS MANAGEMENT W/CONNEC
STEVENSON OPERATIONS MANAGEMENT W/CONNEC
14th Edition
ISBN: 9781264578306
Author: Stevenson
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Chapter 7.S, Problem 9P

a)

Summary Introduction

To determine: The unit cost for 20 units.

Introduction: Learning curve is referred as the cost curve, experience curve, efficiency curve or productivity curve. The leaving curve gives information about the cost, efficiency, productivity and performance of an organization.

b)

Summary Introduction

To determine: The minimum production quantity necessary to make the production cost less than the purchase cost.

Introduction: Learning curve is referred as the cost curve, experience curve, efficiency curve or productivity curve. The leaving curve gives information about the cost, efficiency, productivity and performance of an organization.

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You have been asked to estimate the selling price per unit of a new production line of a certain product. Pertinent data are as follows: Direct labor rate Production material Factory overhead Packing costs Desired profit RO 15.00 per hour RO 375 per 100 items 125% of direct labor 25% of direct cost 30% of total manufacturing cost Past experience has shown that 83% learning curve applies to the labor required for production these items. The time to complete the first item has been estimated to be 1.86 hours. Use the estimated time to complete the 50h item as your standard time for the purpose of estimating the unit selling price.
Please do not give solution in image format thanku For a production process of 30 units with a learning rate of 85% and a cost of $75 to produce the first unit, construct a table displaying the Cost to Product the Nth Unit and the Cumulative Cost for units 1 through 30.
National Company is planning to introduce a new product with an 85 percent learning rate for production for batches of 1,000 units. The variable labor costs are P30 per unit for the first 1,000-unit batch. Each batch requires 100 hours. There are P10,000 in fixed costs not subject to learning.   What is the cumulative average time per batch using the incremental unit-time learning curve for 2,000 units?

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STEVENSON OPERATIONS MANAGEMENT W/CONNEC

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