Operations and Supply Chain Management, 9th Edition WileyPLUS Registration Card + Loose-leaf Print Companion
Operations and Supply Chain Management, 9th Edition WileyPLUS Registration Card + Loose-leaf Print Companion
9th Edition
ISBN: 9781119371618
Author: Roberta S. Russell
Publisher: Wiley (WileyPLUS Products)
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Chapter 8, Problem 5P
Summary Introduction

To draw: The time required for 30th and 60th units.

Introduction

Human resource is one of the major resource of an organization like any other resource such as capital and raw material. Human resource of an organization includes the individuals who work for the organization. Employees working in the organization are the human resource.

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You are an experienced machinist with a small tool shop. You have been asked to submit a bid to produce 12 special clamps for a new die that is under construction. You estimate that the material costs (metal and fasteners) for each clamp are $150.00. You also estimate that 10.65 labor hours are needed to produce the first clamp. The value of your labor is $50/hour. From similar orders in the past, you estimate that there is a 90% learning curve for this type of work. Using this information, what is the lowest total bid (cumulative price for 12 clamps) you should submit if you charge a 25% markup on material and you wish to recoup your labor costs? Hint: set up formulas in Excel (see Moodle video). This is a long problem. Round your answer to 2 decimal places and DO NOT include the $ sign or a comma. For example, answer 4567.89 and NOT $4,567.89 Answer: Check
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