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Operations Management: Processes and Supply Chains, 12th Edition
book

Operations Management: Processes and Supply Chains, 12th Edition

by Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
January 2018
Intermediate to advanced content levelIntermediate to advanced
480 pages
236h 9m
English
Pearson
Content preview from Operations Management: Processes and Supply Chains, 12th Edition

Using Learning Curves

Learning curves can be used in a variety of ways for managerial decision making. Let us look briefly at their use in bid preparation, financial planning, and labor requirement estimation.

Bid Preparation

Estimating labor costs is an important part of preparing bids for large jobs. Knowing the learning rate, the number of units to be produced, and wage rates, the project manager can arrive at the cost of labor by using a learning curve. After calculating expected labor and materials costs, the project manager adds the desired profit to obtain the total bid amount.

Financial Planning

Learning curves can be used in financial planning to help the financial planner determine the amount of cash needed to finance operations. Learning ...

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Publisher Resources

ISBN: 9780134741062