11 A potentially large customer offered to subcontract assembly work that is profitable only if you can

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11 A potentially large customer offered to subcontract assembly work that is profitable only if you can perform the operations at an average time of less than 20 hours each. The contract is for 1,000 units. You run a test and do the first one in 50 hours and the second one in 40 hours.

a. How long would you expect the third one to take?

b. Would you take the contract? Explain.

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Operations Management For Competitive Advantage

ISBN: 1572

11th Edition

Authors: Richard B. Chase, F. Robert Jacobs

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