Solved

The Production Schedule for a New Product Follows  Month  No Units 115220340435\begin{array} { | c | c | } \hline \text { Month } & \text { No Units } \\\hline 1 & 15 \\2 & 20 \\3 & 40 \\4 & 35 \\\hline\end{array}

Question 20

Multiple Choice

The production schedule for a new product follows
 Month  No Units 115220340435\begin{array} { | c | c | } \hline \text { Month } & \text { No Units } \\\hline 1 & 15 \\2 & 20 \\3 & 40 \\4 & 35 \\\hline\end{array}
The first unit took 100 hours to complete, and the rate of learning is 80 percent. Each employee works 40 hours per month. Refer to the copy of Table G.1 below.
Conversion Factors for the Cumulative Average Number of Direct Labor Hours per Unit
80% Learning Rate  ( n= cumulative production)  nnn11.00000190.53718370.4397620.90000200.52425380.4363430.83403210.51715390.4330440.78553220.51045400.4298450.74755230.50410640.3738260.71657240.498081280.3026970.69056250.492342560.2440580.66824260.486885120.1962290.64876270.481676000.18661100.63154280.476687000.17771110.61613290.471918000.17034120.60224300.467339000.16408130.58960310.462931,0000.15867140.57802320.458711,2000.14972150.56737330.464641,4000.14254160.55751340.450721,6000.13660170.54834350.446941,8000.13155180.53979360.443292,0000.1272090% Learning Rate  ( n= cumulative production)  nnn11.00000190.73545370.6709120.95000200.73039380.6683930.91540210.72559390.6659540.88905220.72102400.6635750.86784230.71666640.6204360.85013240.712511280.5606970.83496250.708532560.5058680.82172260.704725120.4559490.80998270.701066000.44519100.79945280.697547000.43496110.78991290.694168000.42629120.78120300.690909000.41878130.77320310.687751,0000.41217140.76580320.674711,2000.40097150.75891330.681771,4000.39173160.75249340.678931,6000.38390170.74646350.676171,8000.37711180.74080360.673502,0000.37114\begin{array}{c}\begin{array}{c}80 \% \text { Learning Rate }\\\text { ( } n=\text { cumulative production) }\\\begin{array}{rrrrrr}\hline n & & n & & {n} & \\\hline 1 & 1.00000 & 19 & 0.53718 & 37 & 0.43976 \\2 & 0.90000 & 20 & 0.52425 & 38 & 0.43634 \\3 & 0.83403 & 21 & 0.51715 & 39 & 0.43304 \\4 & 0.78553 & 22 & 0.51045 & 40 & 0.42984 \\5 & 0.74755 & 23 & 0.50410 & 64 & 0.37382 \\6 & 0.71657 & 24 & 0.49808 & 128 & 0.30269 \\7 & 0.69056 & 25 & 0.49234 & 256 & 0.24405 \\8 & 0.66824 & 26 & 0.48688 & 512 & 0.19622 \\9 & 0.64876 & 27 & 0.48167 & 600 & 0.18661 \\10 & 0.63154 & 28 & 0.47668 & 700 & 0.17771 \\11 & 0.61613 & 29 & 0.47191 & 800 & 0.17034 \\12 & 0.60224 & 30 & 0.46733 & 900 & 0.16408 \\13 & 0.58960 & 31 & 0.46293 & 1,000 & 0.15867 \\14 & 0.57802 & 32 & 0.45871 & 1,200 & 0.14972 \\15 & 0.56737 & 33 & 0.46464 & 1,400 & 0.14254 \\16 & 0.55751 & 34 & 0.45072 & 1,600 & 0.13660 \\17 & 0.54834 & 35 & 0.44694 & 1,800 & 0.13155\\18& 0.53979 & 36 & 0.44329 & 2,000 & 0.12720\end{array}\end{array}\begin{array}{cl}90 \% \text { Learning Rate }\\\text { ( } n=\text { cumulative production) }\\\begin{array}{rrrrrr}\hline n &&{n} & &n & \\\hline 1 & 1.00000 & 19 & 0.73545 & 37 & 0.67091 \\2 & 0.95000 & 20 & 0.73039 & 38 & 0.66839 \\3 & 0.91540 & 21 & 0.72559 & 39 & 0.66595 \\4 & 0.88905 & 22 & 0.72102 & 40 & 0.66357 \\5 & 0.86784 & 23 & 0.71666 & 64 & 0.62043 \\6 & 0.85013 & 24 & 0.71251 & 128 & 0.56069 \\7 & 0.83496 & 25 & 0.70853 & 256 & 0.50586 \\8 & 0.82172 & 26 & 0.70472 & 512 & 0.45594 \\9 & 0.80998 & 27 & 0.70106 & 600 & 0.44519 \\10 & 0.79945 & 28 & 0.69754 & 700 & 0.43496 \\11 & 0.78991 & 29 & 0.69416 & 800 & 0.42629 \\12 & 0.78120 & 30 & 0.69090 & 900 & 0.41878 \\13 & 0.77320 & 31 & 0.68775 & 1,000 & 0.41217 \\14 & 0.76580 & 32 & 0.67471 & 1,200 & 0.40097 \\15 & 0.75891 & 33 & 0.68177 & 1,400 & 0.39173 \\16 & 0.75249 & 34 & 0.67893 & 1,600 & 0.38390 \\17 & 0.74646 & 35 & 0.67617 & 1,800 & 0.37711 \\18 & 0.74080 & 36 & 0.67350 & 2,000 & 0.37114\end{array}\end{array}\end{array}

-Using the information in Case G.1,what is the minimum number of employees needed in month 3?


A) Fewer than 20 employees
B) Greater than or equal to 20 employees but fewer than 30 employees
C) Greater than or equal to 30 employees but fewer than 40 employees
D) Greater than 40 employees

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions