Learning curve concept plays vital role in location decision, Operation Management

Assignment Help:

This assignment is designed to demonstrate that the learning curve concept plays a vital strategic role in location decision.

A company started making a new product simultaneously in a domestic plant and in an offshore plant.

For the domestic plant:

An assembly took 2.5 hours for the first unit and 18.50 hours for the first 20 units. The labor rate is $35 per hour.

For the offshore plant:

The first unit took the same time (2.5 hours) and the learning rate is found to be 85%.  The labor rate is $15 per hour (less than half of the domestic plant!!)

Find the learning rate for the domestic plant.

Find the time required and unit cost for the 1st, 10th, 20th and 22nd units respectively for each of the two plants.

Comment on what you observe in the relative unit labor costs.

Now, find the unit number at which even the cumulative cost (counting from the first unit) in the offshore plant is higher than that in the domestic plant.


Related Discussions:- Learning curve concept plays vital role in location decision

Discuss the breakeven point, Discuss the breakeven point. What is the break...

Discuss the breakeven point. What is the breakeven point? Why does a small business need to do a breakeven analysis?

Explain an approach to a business diversity program, Answer the following q...

Answer the following questions based on your readings. 1. Describe an approach to a business diversity program that would be pragmatic and ethical. 2. What are three possible

Explain election results dismissed and a new election held, An employer cou...

An employer could violate the laboratory conditions doctrine without committing an unfair labor practice, which would cause the election results to be dismissed and a new election

Define conditions which exist globally that are contributing, Please answer...

Please answer both questions fully to have points awarded, Thanks! Decreasing the Incidence of CVD" Please respond to the following: 1. Propose the steps that might be taken

Explain what is the probability distribution of the time, Consider a queuin...

Consider a queuing system with 2 types of customers. Type 1 customers arrive according to a Poisson process with a mean rate of 5 per hour. Type 2 customers arrive according to a P

Explain breakeven point in dollars of sales, A firm is selling two products...

A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable cost of $25 and bar stools $20 Fixed cost for the firm is $200 a. if the sales m

Explain characteristic shared by frame relay and atm, which of the followin...

which of the following is a characteristic shared by frame relay and ATM? a. the use of virtual circuits b. the use of fixed-sized packets known as cells c. the use of ded

Explain framework of the general model of planned change, Describe the fram...

Describe the framework of the general model of planned change. Include a discussion of each activity and a typical sequence of events.

Describe linear programming problem, Swearingen and McDonald, a small furni...

Swearingen and McDonald, a small furniture manufacturer, produces fine hardwood tables and chairs. Each product must go through three stages in the manufacturing process - assembly

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd