How lot size affects the production rate

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Reference no: EM131045148

Your company manufactures specialty ammunition for the U.S. Army. You are bidding on a new contract for similar ammunition. You review historical data and find out that you have manufactured this type of ammunition four times, with the following results:

Lot 1 = 256,000 units @ 853 units/hour

Lot 2 = 332,000 units @ 938 units/hour

Lot 3 = 361,760 units @ 952 units/hour

Lot 4 = 207,000 units @ 690 units/hour

You need to develop a CER using this data. The lot size will be 500,000 units. Should you be concerned about how lot size affects the production rate?

Reference no: EM131045148

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