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.Approximately how long will it take to produce the 25th through thirtieth units?
A)23 hours
B)49 hours
C)29 hours
D)38 hours
E)It is impossible to say without additional information.

Question

Quizplus · Accepted Answer

The learning curve is a power function, and the learning rate is 80%. The assembly time for the 25th unit is 10.4 * (0.8)^24 = 2.6 hours. The assembly time for the 30th unit is 10.4 * (0.8)^29 = 1.6 hours. The total assembly time for the 25th through 30th units is 2.6 + 1.6 + 1.6 + 1.6 + 1.6 = 9.6 hours.

A Company Is Preparing a Bid on a Government Contract