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

Role of production planning and control, Role of Production Planning and Co...

Role of Production Planning and Control in Operation Management Operations are at the centre of the diagram in figure given below because they are the dynamic doing elements o

Explain integrated forecasting and inventory control system, Herman Hahn is...

Herman Hahn is attempting to set up an integrated forecasting and inventory control system for his hardware store, Hahn's Hardware. When Herman indicates that outdoor lights are a

Difference among a business decision and an ethical decision, Do you believ...

Do you believe there is a difference between a business decision and an ethical decision or are they one in the same. 2. Give a specific example of a decision that you have had to

Aishat, A company has the following forecast demand for the next five month...

A company has the following forecast demand for the next five months: 1,600, 2,400, 3,200, 2,800, and 2,400. The following information is also available. current

Operations management, A. How does your organization determine customer req...

A. How does your organization determine customer requirements? ?B. How are your organization''s core competencies tied to its strategic goals?? C. What are the strengths and weakne

Explain why employees join unions, Over which of the principle reasons why ...

Over which of the principle reasons why employees join unions does a supervisor have the most direct control?

Explain collective bargaining, Collective bargaining replaces management's ...

Collective bargaining replaces management's traditional authority to unilaterally establish terms and conditions of employment with bilateral negotiations. How has the collective b

Explain partitioning a population into hierarchical group, Partitioning a p...

Partitioning a population into hierarchical groups or levels and selecting a sample from each group or level is known as which of the following? Simple random sampling Stra

Compute the labour productivity, 10 person assembly line, 160 valves produc...

10 person assembly line, 160 valves produced during 8 hour shift, calculate the labour productivity

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