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Johnson Industries received a contract to develop and produce four high intensity long distance receiver/transmitters for cellular telephones. The first took 2000 labour hours, and cost $39000 worth of purchased and manufactured parts. The second took 1500 labour hours, and cost $37050 in parts. The third took 1450 labour hours, and $31000 in parts, and the fourth took 1275 labour hours, and cost $31492. Johnson was asked to bid on a follow-on contract for another dozen receiver/transmitter units. Ignoring any forgetting factor effects, what should Johnson estimate time and parts costs to be for the dozen units. (Hint: there are two learning curves--one for parts, and one for labour).
How to implement tools in operations management?
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