The production schedule for a new product follows
$$\begin{array} { | c | c | }
\hline \text { Month } & \text { No Units } \
\hline 1 & 15 \
2 & 20 \
3 & 40 \
4 & 35 \
\hline
\end{array}$$
The first unit took 100 hours to complete, and the rate of learning is 80 percent. Each employee works 40 hours per month. Refer to the copy of Table G.1 below.
Conversion Factors for the Cumulative Average Number of Direct Labor Hours per Unit
\(\begin{array}{c}
\begin{array}{c}
80 \% \text { Learning Rate }\
\text { ( } n=\text { cumulative production) }\
\begin{array}{rrrrrr}
\hline n & & n & & {n} & \
\hline 1 & 1.00000 & 19 & 0.53718 & 37 & 0.43976 \
2 & 0.90000 & 20 & 0.52425 & 38 & 0.43634 \
3 & 0.83403 & 21 & 0.51715 & 39 & 0.43304 \
4 & 0.78553 & 22 & 0.51045 & 40 & 0.42984 \
5 & 0.74755 & 23 & 0.50410 & 64 & 0.37382 \
6 & 0.71657 & 24 & 0.49808 & 128 & 0.30269 \
7 & 0.69056 & 25 & 0.49234 & 256 & 0.24405 \
8 & 0.66824 & 26 & 0.48688 & 512 & 0.19622 \
9 & 0.64876 & 27 & 0.48167 & 600 & 0.18661 \
10 & 0.63154 & 28 & 0.47668 & 700 & 0.17771 \
11 & 0.61613 & 29 & 0.47191 & 800 & 0.17034 \
12 & 0.60224 & 30 & 0.46733 & 900 & 0.16408 \
13 & 0.58960 & 31 & 0.46293 & 1,000 & 0.15867 \
14 & 0.57802 & 32 & 0.45871 & 1,200 & 0.14972 \
15 & 0.56737 & 33 & 0.46464 & 1,400 & 0.14254 \
16 & 0.55751 & 34 & 0.45072 & 1,600 & 0.13660 \
17 & 0.54834 & 35 & 0.44694 & 1,800 & 0.13155\
18& 0.53979 & 36 & 0.44329 & 2,000 & 0.12720
\end{array}
\end{array}
\begin{array}{cl}
90 \% \text { Learning Rate }\
\text { ( } n=\text { cumulative production) }\
\begin{array}{rrrrrr}
\hline n &&{n} & &n & \
\hline 1 & 1.00000 & 19 & 0.73545 & 37 & 0.67091 \
2 & 0.95000 & 20 & 0.73039 & 38 & 0.66839 \
3 & 0.91540 & 21 & 0.72559 & 39 & 0.66595 \
4 & 0.88905 & 22 & 0.72102 & 40 & 0.66357 \
5 & 0.86784 & 23 & 0.71666 & 64 & 0.62043 \
6 & 0.85013 & 24 & 0.71251 & 128 & 0.56069 \
7 & 0.83496 & 25 & 0.70853 & 256 & 0.50586 \
8 & 0.82172 & 26 & 0.70472 & 512 & 0.45594 \
9 & 0.80998 & 27 & 0.70106 & 600 & 0.44519 \
10 & 0.79945 & 28 & 0.69754 & 700 & 0.43496 \
11 & 0.78991 & 29 & 0.69416 & 800 & 0.42629 \
12 & 0.78120 & 30 & 0.69090 & 900 & 0.41878 \
13 & 0.77320 & 31 & 0.68775 & 1,000 & 0.41217 \
14 & 0.76580 & 32 & 0.67471 & 1,200 & 0.40097 \
15 & 0.75891 & 33 & 0.68177 & 1,400 & 0.39173 \
16 & 0.75249 & 34 & 0.67893 & 1,600 & 0.38390 \
17 & 0.74646 & 35 & 0.67617 & 1,800 & 0.37711 \
18 & 0.74080 & 36 & 0.67350 & 2,000 & 0.37114
\end{array}
\end{array}
\end{array}\)

-Using the information in Case G.1,what is the minimum number of employees needed in month 3?
A) Fewer than 20 employees
B) Greater than or equal to 20 employees but fewer than 30 employees
C) Greater than or equal to 30 employees but fewer than 40 employees
D) Greater than 40 employees

Question

The production schedule for a new product follows
 $$\begin{array} { | c | c | } 
\hline \text { Month } & \text { No Units } \
\hline 1 & 15 \
2 & 20 \
3 & 40 \
4 & 35 \
\hline
\end{array}$$ 
The first unit took 100 hours to complete, and the rate of learning is 80 percent. Each employee works 40 hours per month. Refer to the copy of Table G.1 below.
 Conversion Factors for the Cumulative Average Number of Direct Labor Hours per Unit
\(\begin{array}{c}
\begin{array}{c}
80 \% \text { Learning Rate }\
\text { ( } n=\text { cumulative production) }\
\begin{array}{rrrrrr}
\hline n & & n & & {n} & \
\hline 1 & 1.00000 & 19 & 0.53718 & 37 & 0.43976 \
2 & 0.90000 & 20 & 0.52425 & 38 & 0.43634 \
3 & 0.83403 & 21 & 0.51715 & 39 & 0.43304 \
4 & 0.78553 & 22 & 0.51045 & 40 & 0.42984 \
5 & 0.74755 & 23 & 0.50410 & 64 & 0.37382 \
6 & 0.71657 & 24 & 0.49808 & 128 & 0.30269 \
7 & 0.69056 & 25 & 0.49234 & 256 & 0.24405 \
8 & 0.66824 & 26 & 0.48688 & 512 & 0.19622 \
9 & 0.64876 & 27 & 0.48167 & 600 & 0.18661 \
10 & 0.63154 & 28 & 0.47668 & 700 & 0.17771 \
11 & 0.61613 & 29 & 0.47191 & 800 & 0.17034 \
12 & 0.60224 & 30 & 0.46733 & 900 & 0.16408 \
13 & 0.58960 & 31 & 0.46293 & 1,000 & 0.15867 \
14 & 0.57802 & 32 & 0.45871 & 1,200 & 0.14972 \
15 & 0.56737 & 33 & 0.46464 & 1,400 & 0.14254 \
16 & 0.55751 & 34 & 0.45072 & 1,600 & 0.13660 \
17 & 0.54834 & 35 & 0.44694 & 1,800 & 0.13155\
18& 0.53979 & 36 & 0.44329 & 2,000 & 0.12720
\end{array}
\end{array}
\begin{array}{cl}
90 \% \text { Learning Rate }\
\text { ( } n=\text { cumulative production) }\
\begin{array}{rrrrrr}
\hline n &&{n} & &n & \
\hline 1 & 1.00000 & 19 & 0.73545 & 37 & 0.67091 \
2 & 0.95000 & 20 & 0.73039 & 38 & 0.66839 \
3 & 0.91540 & 21 & 0.72559 & 39 & 0.66595 \
4 & 0.88905 & 22 & 0.72102 & 40 & 0.66357 \
5 & 0.86784 & 23 & 0.71666 & 64 & 0.62043 \
6 & 0.85013 & 24 & 0.71251 & 128 & 0.56069 \
7 & 0.83496 & 25 & 0.70853 & 256 & 0.50586 \
8 & 0.82172 & 26 & 0.70472 & 512 & 0.45594 \
9 & 0.80998 & 27 & 0.70106 & 600 & 0.44519 \
10 & 0.79945 & 28 & 0.69754 & 700 & 0.43496 \
11 & 0.78991 & 29 & 0.69416 & 800 & 0.42629 \
12 & 0.78120 & 30 & 0.69090 & 900 & 0.41878 \
13 & 0.77320 & 31 & 0.68775 & 1,000 & 0.41217 \
14 & 0.76580 & 32 & 0.67471 & 1,200 & 0.40097 \
15 & 0.75891 & 33 & 0.68177 & 1,400 & 0.39173 \
16 & 0.75249 & 34 & 0.67893 & 1,600 & 0.38390 \
17 & 0.74646 & 35 & 0.67617 & 1,800 & 0.37711 \
18 & 0.74080 & 36 & 0.67350 & 2,000 & 0.37114
\end{array}
\end{array}
\end{array}\)

-Using the information in Case G.1,what is the minimum number of employees needed in month 3?
A) Fewer than 20 employees
B) Greater than or equal to 20 employees but fewer than 30 employees
C) Greater than or equal to 30 employees but fewer than 40 employees
D) Greater than 40 employees

Quizplus · Accepted Answer

The cumulative average number of direct labor hours per unit for a production of 40 units is 0.43976. Each employee works 40 hours per month. Therefore, the minimum number of employees needed in month 3 is 40 / 0.43976 = 90.98, which is greater than or equal to 20 employees but fewer than 30 employees.

The Production Schedule for a New Product Follows Month No Units 115220340435\begin{array} { | c | c | } \hline \text { Month } & \text { No Units } \\\hline 1 & 15 \\2 & 20 \\3 & 40 \\4 & 35 \\\hline\end{array} Month 1234​ No Units 15204035​​

The Production Schedule for a New Product Follows $\begin{array} { | c | c | } \hline \text { Month } & \text { No Units } \\\hline 1 & 15 \\2 & 20 \\3 & 40 \\4 & 35 \\\hline\end{array}$