Nite-Site, Inc., manufactures image intensification devices used in products such as night-vision goggles and aviators night-vision imaging
Question:
Nite-Site, Inc., manufactures image intensification devices used in products such as night-vision goggles and aviator’s night-vision imaging systems. The primary customer for these products is the Canadian military. The military requires that learning curves be employed in the bid process for awarding military contracts. The company is planning to make a bid for 120 image intensifiers to be used in a military vehicle. The company estimates the first unit will require 80 hours of direct labour to produce. The industry learning curve for this particular type of product is 92%. Determine how many hours will be required to produce the 60th and 120th units.
Step by Step Answer:
Operations Management Creating Value Along the Supply Chain
ISBN: 978-1118301173
1st Canadian Edition
Authors: Roberta S. Russell, Bernard W. Taylor, Ignacio Castillo, Navneet Vidyarthi