Operations Management: Sustainability and Supply Chain Management (12th Edition)
Operations Management: Sustainability and Supply Chain Management (12th Edition)
12th Edition
ISBN: 9780134130422
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter E, Problem 15P
Summary Introduction

To determine: The hours required for plane 12, 13, 14 and 15 and the cost for planes from plane 12 through plane 15.

Introduction:

Learning curve:

Learning curve is based on the premise that when a person is repeating a task or job again and again, the performance of the person on that job or task will improve. It will depict relationship between cost and output over a definitive period of time.

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Assume that General Dynamics, which manufactures high-technology instruments for spacecraft, is considering the sale of a navigational unit to a government agency in India that wishes to launch its own communications satellite. The government agency plans to purchase 8 units, although it would also consider buying 16 units. General Dynamics has started a chart relating labor time required to units produced. Unit Produced (X) Time Required toProduce the Xth Unit 1 10,000 hours 2 8,000 hours 4 6,400 hours 8 ? 16 ?   Required: a. Compute the labor time required to produce 8 and 16 units.b. Assume that labor time costs $125 per hour. Compare the cost of producing the 1st unit to the cost of producing the 16th unit. What is the percentage of the cost of the 16th unit to the cost of the 1st unit?
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