# Learning Curve Problems

1) Given the following information, determine the equation for the unit formulation. (Round intermediate calculations to 4 decimal places)

Unit Number (X) Unit Cost(Y)

1 $900.00

2 780.00

3 717.37

4 676.00

- Y = (900)(X) 0.6931

- Y = (900)(X) -0.2065

- Y = (900)(X) 0.9000

- Y = (900)(X) -0.1521

2) It cost a contractor $9,765 to manufacture their first unit. The company expects to experience an 82% unit learning curve. Estimate the cost of the 7th unit. (Round intermediate calculations to 4 decimal places)

- $ 7,615

- $ 8,593

- $ 6,821

- $ 5,594

3) If a company took 100 hours to assemble their first unit and 90 hours to assemble the second unit, we might expect it to take:

- 81 hours to assemble the fourth unit.

- 72.25 hours to assemble the third unit.

- 72.25 hours to assemble the fourth unit.

- 70 hours to assemble the third unit.

4) It took a contractor 1285 hours to manufacture their first unit of an item. If the contractor expects to achieve a 92% unit learning curve, how many hours would be required to manufacture units 52-100? (Use the tables provided in the lesson).

- 290,475

- 38,289

- 37,488

- 284,398

5) In the following unit learning curve equation:

Y=34(X)-0.134425

- The slope equals 88%.

- Y represents the cost of the 34th unit.

- Y is the cost of the first unit.

- The slope equals 91.1%

https://brainmass.com/business/managerial-statistics/564700

#### Solution Preview

1. 780/900 = 86.6667%, so we know the slope is 86.6667%. The exponent on X is given by:

ln(0.866667)/ln(2) = -0.2065

Y = 900 X ^(-0.2065)

2. Given a slope of 82%, we calculate the ...

#### Solution Summary

Full solutions with explanations are provided.

This problem analyzes multiple choice questions on supplier costs and the learning curve

1. Which of the following is not considered a major element that affects a supplier's cost?

(a). Effectiveness of competitors,

(b). Capabilities of management,

(c). Efficiency of labor.

(d). Amount and quality of subcontracting.

2. Which of the following is not a common use of learning curve?

(a). Estimation of Target costs,

(b). Improving Make-or-Buy Analyses,

(c). Estimation Delivery Times,

(d). Estimation of Material costs.