A company is preparing a bid on a government contract for 40 units of a certain product.The operations manager estimates the assembly time required for the first two units to be 10.4 hours and 8.8 hours,respectively.What is the expected time required to produce the 40^th unit? A)3.2 hours B)4.4 hours C)5.9 hours D)3.7 hours E)2.2 hours

Question

Quizplus · Accepted Answer

The expected time required to produce the 40th unit can be estimated using the learning curve theory, which suggests that the time required to produce each unit decreases at a constant rate as more units are produced. The formula to calculate the time for the nth unit is Tn = T1 * n^(log b / log 2), where T1 is the time to produce the first unit, n is the unit number, and b is the learning rate. The learning rate can be calculated using the formula b = T2 / T1, where T2 is the time to produce the second unit. In this case, T1 = 10.4 hours, T2 = 8.8 hours, so b = 8.8 / 10.4 = 0.846. Plugging these values into the formula for the 40th unit gives T40 = 10.4 * 40^(log 0.846 / log 2), which approximately equals 4.4 hours.

A Company Is Preparing a Bid on a Government Contract