Kelly-Lambing, Inc., a builder of government contracted small ships, has a stead

Question

Kelly-Lambing, Inc., a builder of government contracted small ships, has a steady work force of 10 ver skilled craftspeople. These workers can supply 2,400 labor-hours each per year. Kelly-lambing is about to undertake a new contract, building a new style of boat. The first boat is expected to take 6,100 hours to complete. The firm thinks that 75% is the expected learning rate. What is the firm's capacity to make these boats-that is, how many units can the firm make in 1 year? If the operations manager can increase the learning rate to 70% instead of 75%, how many units can the firm make? (Round all numerical responses in this exercise to the nearest whole number.) Total time available = 24000 hours.

Explanation / Answer

Yearly Working hours per worker 2400 No. of Crafts men 10 Total number available hours 24000 Hours required at 75% Learning rate Hours required at 70% Learning rate First boat hour 6100 6100 Second boat hour 4575 4270 Third boat hour 3431 2989 Fourth Boat hour 2573 2092 Total hours required 16680 15451

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