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Week 12 Learning Curve Discussion Forum Instructions And Deadlines 1

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Running head: LEARNING CURVE 1
LEARNING CURVE
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LEARNING CURVE 2
LEARNING CURVE
WEEK 12 (Learning Curve) Discussion Forum Instructions
You should first read Chapter 14 pgs. 337-341 and 347-349 and the two learning curve articles, and
listen to my narrated presentation on learning curves.
Discussion Assignment:
Review the learning curve example for ABC Corporation on pages 347-348.
Question 1: Instead of an 80% learning curve, the supplier believes that a 95% learning curve will be
more indicative of what will occur in the future (starting at unit 51). What would be the unit cost of
labor for the next 350 units using a 95% learning curve? Show calculations that use the formulas that
are provided in the posted learning curve articles.
Y
Ca
( x) = a( x
-b
) (Burt, Pinkerton, & Petcavage, 2009)
b= (log learning rate % ) / Log 2.0
b= log 0.95 / log 2
b= - 0.074
a=1000
x= 350 units
y= 1000( 350
-0.074
)
y= 648.24

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Running head: LEARNING CURVE 1 LEARNING CURVE Name Institutional Affiliation LEARNING CURVE 2 LEARNING CURVE WEEK 12 (Learning Curve) Discussion Forum Instructions You should first read Chapter 14 pgs. 337-341 and 347-349 and the two learning curve articles, and listen to my narrated presentation on learning curves. Discussion Assignment: Review the learning curve example for ABC Corporation on pages 347-348. Question 1: Instead of an 80% learning curve, the supplier believes that a 95% learning curve will be more indicative of what will occur in the future (starting at unit 51). What would be the unit cost of labor for the next 350 units using a 95% learning curve? Show calculations that use the formulas that are provided in the posted learning curve articles. YCa( x) = a( x-b) (Burt, Pinkerton, & Petcavage, 2009) b= (log learning rate % ) / Log 2.0 b= log 0.95 / log 2 b= - 0.074 a=1000 x= 350 units y= 1000( 350 -0.074) y= 648.24 LEARNING CURVE 3 Total cost for the 350 units * 648 = 226,800 Less the amount of making the first 50 units = 50* 1000= 50,000 Hence the total cost of 350 units = 226,800 – 50,000 = 176,800 Unit cost of a single unit of the 350 units = 176,800/ 350 = $ 505 per unit. Question 2: What would be the total price ABC should pay for the 350 units for an 80% learning curve for labor, and for a 95% learning curve for labor? What % difference is this between the two assumptions of learning curves? Total time function Y= ax b+1 At 95% rate b = lo ...
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