Question: Dale Computer Company accepts orders from customers for computers online through its website. The company configures and builds the computers to order at one of

Dale Computer Company accepts orders from customers for computers online through its website. The company configures and builds the computers to order at one of its distribution centers from components it orders from its various suppliers in Canada and overseas. It is continually retaining new suppliers as its computer models change and as new computing technologies are developed. It promises its customers that when an order is placed, the customer will receive it quickly, typically within a week, which in turn requires that Dale’s suppliers provide component parts as quickly as they are demanded. Normally Dale sets a target of three days for a supplier to deliver parts once they are ordered, and Dale uses SPC charts to monitor a supplier’s delivery performance once this target value has been achieved. Dale has learned from past experiences that it takes some time for new suppliers to improve their production and delivery processes to consistently meet Dale’s target delivery time. It normally takes a supplier about 15 days to deliver Dale’s first order. Determine approximately how many orders it will take a new supplier that has a 70% learning curve to be able to meet Dale’s orders within the specified target time.

Step by Step Solution

3.41 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The learning curve model states that the time required to produce any itemsgoods pr... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (2 attachments)

PDF file Icon

1661_606f3d7cc50fe_710760.pdf

180 KBs PDF File

Word file Icon

1661_606f3d7cc50fe_710760.docx

120 KBs Word File

Students Have Also Explored These Related Operations Management Questions!