Solved Problem
The Minnesota Coach Company has just been given the following production schedule for ski-lift gondola cars. This product is considerably different from any others the company has produced. Historically, the company’s learning rate has been 80 percent on large projects. The first unit took 1,000 hours to produce.
Month |
Units |
Cumulative Units |
|---|---|---|
1 |
3 |
3 |
2 |
7 |
10 |
3 |
10 |
20 |
4 |
12 |
32 |
5 |
4 |
36 |
6 |
2 |
38 |
Estimate how many hours would be required to complete the 38th unit.
If the budget only provides for a maximum of 30 direct labor employees in any month and a total of 15,000 direct labor hours for the entire schedule, will the budget be adequate? Assume that each direct labor employee is productive for 150 work hours each month. ...
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