Operations Management
Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Chapter E, Problem 26P
Summary Introduction

To determine: The learning curve.

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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State the application of learning curves?
Problem 4 A cell phone company is interested in submitting an order for 20 units of a certain cell phone prototype. The costs of the first 10 units that Magic Corporation has built of the cell phone prototype are listed below. UNIT NUMBER 1 2 3 4 5 COST $200 $170 $140 $122 $122 UNIT NUMBER 6 7 8 9 10 COST $80 $74 $70 $65 $62 a. What would be a good learning rate estimate for the cell phone prototype? b. Assuming that learning continues, what is the expected total cost of the 20 cell phones purchase order? c. What is a good estimate of the cost for the 20th unit?
Name three approches that are used to solve the learning curve problems ?
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