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.What is the average time per unit for the first 30 units?
A)4.7 hours
B)5.9 hours
C)5.6 hours
D)4.5 hours
E)3.6 hours

Question

Quizplus · Accepted Answer

The average time per unit for the first 30 units can be calculated using the learning curve effect. The time for the first unit is 10.4 hours, and the second unit is 8.8 hours, indicating a learning rate. Using the learning curve formula, the average time per unit for the first 30 units is approximately 5.6 hours.

A Company Is Preparing a Bid on a Government Contract