Learning Curve and Construction Time. A construction company has just completed a bridge over the Pearl River.
Question:
Learning Curve and Construction Time. A construction company has just completed a bridge over the Pearl River. This is the first bridge the company has built, and it required 100 weeks to complete. Now, having a bridge construction crew with some experience, the company would like to continue building bridges. Because of the investment in heavy machinery needed continuously by this crew, the company believes it would have to bring the average construction time to less than one year (52 weeks) per bridge in order to earn a sufficient return on investment. The average construction time will follow an 80% learning curve.
Required: Compute the number of additional bridges the crew must build to bring the average construction time (over all bridges constructed) below one year per bridge. (ICMA adapted) LO3
Step by Step Answer:
Cost Accounting
ISBN: 9780538828079
11th Edition
Authors: Lawrence H. Hammer, William K. Carter, Milton F. Usry