Learning curve analysis is appropriate when a supplier uses a new production process or produces an item for the first time.

Question

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Learning curve analysis helps in understanding the relationship between the unit cost of production and the cumulative volume of production. It is useful in situations where a supplier uses a new production process or produces an item for the first time because these situations involve a steep learning curve, and the analysis can help identify the optimal production volume that minimizes costs.

Learning Curve Analysis Is Appropriate When a Supplier Uses a New