Prince Aerospace Inc. builds small commuter aircrafts for sale to various customers. The company has a skilled

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Prince Aerospace Inc. builds small commuter aircrafts for sale to various customers. The company has a skilled workforce of 15. The total labor time contributed by each worker of this work force is 2,200 hours per year. Prince Aerospace has contracted with a regional airline company to build a small jet aircraft. It is estimated that building the first jet aircraft will take 8,000 hours to complete. Based on past experience of building aircrafts, the company believes its learning rate to be 80%:

1. How many jet aircrafts can Prince Aerospace build in one year?

2. Through additional training, if the company can increase the learning rate of workers to 75%, how many aircrafts can the company make now?

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Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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