Jericho Vehicles is considering making a bid for a mobile rocket-launching system for the military. However, the
Question:
Jericho Vehicles is considering making a bid for a mobile rocket-launching system for the military. However, the company has almost no experience in producing this type of vehicle. In an effort to develop a learning curve for the production of this new mobile weapon system, management has called contacts from several former competitors who went bankrupt. Although management could not obtain direct learning curve rates, they did learn from one contact that for a system with similar features, the first unit required 2400 hours of direct labour to produce and the 30th and final unit required 1450 hours to produce. Determine the learning curve rate for this vehicle.
Step by Step Answer:
Operations Management Creating Value Along the Supply Chain
ISBN: 978-1118301173
1st Canadian Edition
Authors: Roberta S. Russell, Bernard W. Taylor, Ignacio Castillo, Navneet Vidyarthi