We will see how learning curves is a valuable tool for both buyer and supplier in supply management.

Please use a Microsoft Excel file for this case to demonstrate your knowledge of the calculations (questions 1-3).

I don't know how to do the excel please help

UNDERSTANDING LEARNING CURVES Jenny Wilson is a buyer at Flextron, a manufacturer of large industrial pumps. She has a requirement for a customized subassembly that a preferred supplier, Vistral, is building for the first time. She is preparing for negotiation with Vistral, where a key issue will be the price of the subassembly. Given the unique nature of this subassembly, Jenny expects to incorporate into the contract price reduction targets based on learning curve estimates. While Jenny does not have specific data for Vistral, she has accumulated data for a subassembly that was similar in design and manufacturing complexity. Total Labor Average Labor Units Hours per Unit Learning Rate 16 ****** 2 4 8 16 32 64 10.8 19.2 35.2 64 115.2 211.2 128 384 Overall average improvement rate: Applicable learning curve: Assignment Questions 1. Given the above data, calculate the average labor per unit given the cumulative total labor hours provided. 2. Calculate the appropriate learning rate and the overall average improvement rate for this data set. 3. Plot the data on an X-Y chart. Label the X axis "Units Produced" and the Y axis "Average Labor per Unit