Kelly-Lambing, Inc., a builder of government contracted small ships, has a stead
ID: 335733 • Letter: K
Question
Kelly-Lambing, Inc., a builder of government contracted small ships, has a steady workforce of 10 very skilled craftspeople. These workers can supply 2,500 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 6,200 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.)
Number of Boats @ Total time 75% and 70%
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ilhg 75 a upply 2 5c firm link:1ha 5 d c cxpected eaming att he im 's capac to msh & hese cats ha s, how many unitz can the frm make n I vear? lf the operations managcr can increasc the isaming rate to 70% nstead o 75%, now man units can te firm make? enc se to de /9 ha cuna a n e ca es anscs se Total timcavaiable- 25200 hcurs. otal Number of BU8ts 75%!Explanation / Answer
We have to take help of standard learning curve table to arrive at required answer .
Total available labour hours from 10 workers in 1 year = 2500 labour – hours/ worker x 10 = 25,000 labour-hours
Time required to complete first boat =6200 hours
Learning rate = 75%
Basis incorporating above data in learning curve table:
Total time required to produce 6 units = 24394 hours
Total time required to produce 7 units = 27158 hours
Therefore , maximum 6 number of boats can be made in 1 year when maximum available labour hours is 25000
Similarly ,
Time required to complete first boat =6200 hours
Learning rate = 70%
Basis incorporating above data in learning curve table:
Time required to produce 7th unit = 24553 hours
Time required to produce 8th unit = 26680 hours
Therefore maximum 7 number of boats can be made in 1 year when maximum available labour hours is 25000
MAXIMUM 6 NUMBER OF BOATS CAN BE MADE IN 1 YEARAT LEARNING RATE OF 75%
AMXIMUM 7 NUMBER OF BOATS CAN BE MADE IN 1 YEAR AT LARNING RATE OF 70%
MAXIMUM 6 NUMBER OF BOATS CAN BE MADE IN 1 YEARAT LEARNING RATE OF 75%
AMXIMUM 7 NUMBER OF BOATS CAN BE MADE IN 1 YEAR AT LARNING RATE OF 70%
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