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 17P

Regional Power owns 25 small power generating plants. It has contracted with Genco Services to overhaul the power turbines of each of the plants. The number of hours that Genco billed Regional to complete the third turbine was 460 Regional pays Genco $60 per hour for its services. As the maintenance manager for Regional, you are trying to estimate the cost of overhauling the fourth turbine. How much would you expect to pay for the overhaul of number 5 and number 6? All the turbines are similar, and an 80% learning curve is appropriate.

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